ESTECH Secures $5 Million in New Financing for New Product Development; Funding Enables Medical Device Company to Expand “Least Invasive Cardiac Surgery” Product Line
Business Editors/Health/Medical Writers
DANVILLE, Calif.–(BUSINESS WIRE)–Aug. 12, 2003
Endoscopic Technologies, Inc. (ESTECH), a medical device company focused on the development and sale of products for use in minimally invasive cardiovascular surgery procedures, announced today that it has closed a Series B equity transaction in which the Company raised $5 million. Telegraph Hill Partners, L.P and Psilos Group Managers, L.P. co-led the financing, which also included the company’s prior shareholders.
Founded in 1996, ESTECH’s tools enable surgeons to perform coronary artery bypass surgery (CABG) on a beating heart in order to avoid the use of heart-lung machines, which are known to increase the risk of stroke as a surgical complication. The Company’s products also enable CABG surgery to be performed without a sternotomy, where the patient has an 8″-12″ opening in the chest cavity; ESTECH’s surgeries, in contrast, are typically performed through 2″ surgical openings, resulting in shorter hospital stays, less pain, and significantly fewer complications for patients with coronary artery disease.
The Series B financing will enable ESTECH to complete development of new products for the treatment of atrial fibrillation and congestive heart failure. Combined, coronary artery disease, atrial fibrillation and congestive heart failure affect more than 8 million Americans and cost the U.S. Healthcare system more than $30 billion per year. ESTECH’s products have demonstrated the ability to save hospitals as much as 15%-30% per procedure performed.
Robert Shepler of Telegraph Hill Partners commented, “We have been impressed with ESTECH’s innovation and approach to surgical systems focused on minimally invasive cardiac surgery. Art Bertolero and his team have created a market leading product line for CABG procedures and their forthcoming system for treating atrial fibrillation should achieve the same standing of excellence.”
Telegraph Hill Partners, based in San Francisco, CA, is a private equity investment firm specializing in life science and medical device businesses. The firm targets investments in private companies that demonstrate strong financial performance and innovative products or services. Additional information can be found at www.thpartners.net.
Psilos Group Managers, with offices in New York and San Francisco, is a healthcare-focused venture fund with over $230 million under management. The firm was founded in 1998 and invests in private companies that offer medical devices and healthcare services and technology products that establish new ways of improving clinical, administrative and cost outcomes in the healthcare arena. Additional information can be found at www.psilos.com.
ESTECH was founded in 1996 and is headquartered in Danville, California. The company sells its “Least Invasive Cardiac Surgery” products worldwide.
ESTECH, Inc. and “Least Invasive Surgery” are trademarks of Endoscopic Technologies, Inc.
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