Digital-surgery-as-a-service company Galen Robotics announced today that it closed an oversubscribed Series A round worth $15 million.
Baltimore-based Galen Robotics, founded in 2016, develops a collaborative soft tissue surgical robot. It aims to become the first surgical robot company to launch “as-a-service” using the per-usage disposable model. The company submitted its surgical robot to the FDA for consideration.
This represents an effort to “level the surgical playing field,” according to a news release. Galen Robotics says its platform could erase large capital expenditures associated with today’s surgical robots. Once cleared, Galen Robotics intends to make its platform available for minimally invasive procedures. It first has its eye on laryngological procedures. Further indications could include ENT, neurosurgery, spine and cardiothoracic procedures.
Galen Robotics received an investment in its Series A from Ambix Healthcare Partners, the company said. It said the Series A helped to complete its final robot prototype and submission to the FDA. Galen Robotics earmarked further funds for developing a clinical sales team. It also plans to expand engineering, grow product development and develop surgeon training programs.
A business pivot
“Because the pandemic wreaked havoc on hospital profits with elective surgeries being postponed, we had to pivot our business model from hospitals paying upfront for capital equipment to “as-a-service,” said Galen Robotics President and CEO Bruce Lichorowic. “We will be the first robotic company to launch using an on-demand business model.”
Galen Robotics also opened a second close for its Series A worth an additional $5 million. It expects this to “go quickly” given its stage and forward progress. The company offered the option to accommodate anticipated demand and manage COVID-19-affected supply chain constraints.
“It was an easy and quick decision for our firm to lead the Galen Series A funding round,” said Dr. Aaron Berez, managing director, Ambix Healthcare Partners. “We watched this team take an early surgical robotic prototype from Johns Hopkins University’s Robotics Lab, develop it into a potential game changer, and submit it to FDA, all during a pandemic.
“Add to that the current state of supply chain issues, and economic uncertainty, and we’re very impressed with how this team was able to consistently execute and hit their milestones.”