Devices & Diagnostics

Skin stapler Incisive Surgical raising new funds for new device

The company in May debuted a new version of its INSORB Absorbable Skin Stapler as well as stronger staples. The device promises a quicker — and better looking — approach to stapling by using dissolvable staples that have a comparable strength to metal, are quick to apply and go beneath the skin.

PLYMOUTH, Minnesota — Skin-stapling device company Incisive Surgical is raising additional money to fuel sales of its redesigned device.

The company in May debuted a new version (pdf) of its INSORB Absorbable Skin Stapler as well as stronger staples. The device promises a quicker — and better-looking — approach to stapling by using dissolvable staples that have a comparable strength to metal, are quick to apply, and go beneath the skin (the site has a rather grisly before-and-after photo gallery proving its point). Incisive also promises to cut down on the number of operating-room needle sticks.

The new version makes several improvements. The new staples are 25 percent stronger, the procedure now works on more parts of the body (such as the knees), and the device won’t require specialized, Incisive-designed forceps to operate. Ronald McClurg, the company’s vice president and chief financial officer, said in many instances physicians wanted to use the device but at the time of closure didn’t have a sterile set of Incisive forceps to operate its device.

Plus, independent device representatives that sold the product had to hold as many as three training sessions with physicians on the old device. Now, it often takes a minutes-long demonstration, McClurg said.

His company’s recent filing with the Securities and& Exchange Commission stated that Incisive could raise up to $2.5 million. But McClurg said the company hopes to raise between $1 million to $1.5 million to help with device sales. That funding would help the company reach profitability within the next 12 months, McClurg said.

Incisive has sold about 375,000 units and expects to have revenue of about $5.5 million this year.

The company isn’t offering equity in its latest fund-raise. It’s raising the investment through debt, options and other warrants and securities, according to the SEC filing.