Motus GI said today that it closed a $30 million private placement which it plans to use in support of the commercial launch of its Pure-Vu colonoscopy system.
The lead investor in the placement was Perceptive Advisors, joined by Orchestra Medical Ventures, Ascent Biomedical Ventures, Jacobs Investment Company, GJG Life Sciences and Pura Vida Investments.
The Tirat Carmel, Israel-based company won FDA clearance in Sept. 2016 for its device used to clean poorly-prepped colons during colonoscopies.
“We are excited with the outcome of this oversubscribed offering. The proceeds from the offering are expected to give us the capital to proceed with the U.S. commercial introduction of the Pure-Vu system and build awareness and support for the Pure-Vu system’s benefits amongst providers, patients and payers,” CEO Mark Pomeranz said in prepared remarks. “Inadequate bowel prep is one of the greatest challenges to effective, successful colonoscopies. It leads to missed adenomas and procedures needing to be repeated earlier than the recommended guidelines, adding cost to the healthcare system. The Pure-Vu system’s ability to rapidly clean the colon during the colonoscopy procedure has the potential to improve the quality of the exam, increase patient satisfaction and reduce costs.”
Motus is introducing the system on a pilot basis, the company said, and expects to complete its 1st U.S. in-hospital and outpatient installations in the 1st quarter of this year.
“Motus’ Pure-Vu system has the potential to significantly improve colonoscopy , which is one of the world’s most common medical procedures with over 15 million performed just in the US every year,” Motus chairman & managing partner of Orchestra Medical Ventures, David Hochman, added. “The proceeds of this financing will help us fulfill the enormous potential of this solution, including clinical study initiatives to support expansion of the Pure-Vu system’s indication for use in colonoscopies with a significantly reduced preparation for patients who find it difficult to comply with and tolerate conventional, purgative-based prep regimens. We believe that dramatically reducing the bowel prep burden, which is one of the major barriers to colonoscopy procedures, would be welcomed by all.”
Last November, the company touted data from a clinical trial that evaluated its device in 50 colonoscopies, using a regimen of an 18-24 hour liquid diet and bisacodyl tablets designed to deliberately create inadequately prepped colons.
The team found that the Pure-Vu system significantly increased the number of participants with an adequate cleansing level from 31% at baseline to 98% after use of the device.