Update: Corrected to accurately reflect the company admitted to no wrongdoing in its Dept. of Justice case.
EndoGastric Solutions said today it raised $50 million in a new round of financing for its EsophyX acid reflux treatment device.
The company makes endoscopic surgical equipment for transoral incisionless fundoplication, tissue-stapling in the stomach and esophagus, designed to treat gastroesophageal reflux disease.
The round was led by CRG and joined by existing EGS investors Advanced Technology Ventures, Canaan Partners, Chicago Growth Partners, Foundation Medical Partners and Radius Ventures, the Redmond, Wash.-based company said
“EGS has demonstrated that the strong data and dramatic shifts in healthcare economics support increased access to their proprietary TIF procedure using EsophyX technology. Our investment in their business will support growth and build substantial value in the company,” CRG chairman Charles Tate said in a press release.
Funds from the round will be used to enhance commercialization and continue R&D of the company’s next generation products for use in its proprietary TIF procedure.
“Now that significant clinical data and reimbursement hurdles have been addressed, it is time to focus incremental resources into expanding access to millions of chronic GERD sufferers who could benefit from our TIF procedure. We are pleased to have the confidence of CRG, an investment partner renowned for its strategic investments in healthcare, as well as our long-term investors supporting our commercialization plans,” CEO Skip Baldino said in prepared remarks.
Last May, EndoGastric Solutions touted $30 million raised in a Series G fundraising round in support of its acid reflux treatment device.
EndoGastric said it hoped to publish data from a trio of clinical trials, pursue reimbursement and develop new products with the funds.
Last February, the company emerged from a Dept. of Justice investigation, paying $5.3 million while admitting no wrongdoing to settle allegations that the company engaged in Medicare fraud and illegal kickbacks to promote its EsophyX acid reflux disease treatment device.
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