EndoGastric Solutions Secures $30.5 Million In New Financing

EndoGastric Solutions® (EGS), a leader in incisionless procedural
therapy for gastroesophageal reflux disease (GERD), announced today that
it has secured $30.5 million in new financing led by existing EGS
investors Advanced Technology Ventures (ATV), Canaan Partners, Canepa
Healthcare, Chicago Growth Partners, CRG, Radius Ventures, Sightline
Partners, and several new healthcare investors excited about EGS’
commercial advances.

“EGS continues to lay the foundation for success having achieved a
number of important commercial milestones in recent months,” said Mike
Carusi, General Partner, Advanced Technology Ventures. “The company is
very well positioned to continue the acceleration of its growth going
forward. ATV and our fellow EGS co-investors are very excited about the
company’s prospects to become the leading long-term solution in the
treatment of GERD.”

EGS plans to supplement existing cash balances with these new proceeds
to continue its commercial expansion of the TIF® procedure in support of
its growing physician customer base, while continuing to invest in
sustaining engineering to optimize gross margin.

“This round of funding will enable EGS to continue to expand commercial
operations and provide the millions of patients suffering from GERD
access to the TIF procedure,” said Skip Baldino, President and CEO of
EndoGastric Solutions. “Recent publications demonstrating both
durability and efficacy along with the FDA’s expanded labeling to
include TIF procedures performed concomitantly with a hiatal hernia
repair and the release of the third generation EsophyX Z+ device have
positioned the company for rapid growth. In addition, recent
reclassification of outpatient payments now more accurately align with
the true cost of the TIF procedure and will further the clinical
adoption of this important treatment option.”

About GERD

Gastroesophageal reflux disease (GERD) is a chronic condition in which
the gastroesophageal valve (GEV) allows gastric contents to reflux (wash
backwards) into the esophagus, causing heartburn and possible injury to
the esophageal lining. In the United States (U.S.), GERD is the most
common gastrointestinal-related diagnosis physicians make during
clinical visits. Pain and discomfort from acid reflux impact more than
80 million Americans at least once a month according to estimates. The
first treatment recommendation for patients with GERD is to make
lifestyle changes (e.g., diet, scheduled eating times and sleeping
positions). Patients are also instructed to take medications—proton pump
inhibitors; unfortunately, patients frequently increase their dosage
and, over time, become dependent on these medications to control their
symptoms. In addition, a variety of other health complications are
linked to long-term, maximum-dose dependency on these PPIs.

About Transoral Incisionless Fundoplication (TIF®)
procedure for reflux

A minimally invasive endoscopic treatment, performed without the need
for external incisions through the skin, the TIF 2.0 procedure offers
patients who require an anatomical repair an effective treatment option
to correct the underlying cause of GERD. Most patients stop using daily
medications to control their symptoms and had their esophageal
inflammation (esophagitis) eliminated up to five years after the TIF
procedure, based on clinical studies.

There have been over 20,000 patients who have benefited from the TIF
procedure worldwide since the EsophyX® device launched. In the past ten
years, more than 60 centers have published over 80 peer-reviewed papers.
These studies have consistently documented improved outcomes on more
than 1,300 unique study patients. For more information, please visit www.GERDHelp.com.

About Reimbursement

Commercial and federal insurance providers, representing more than 100
million lives, have recognized the value of the TIF procedure through
recently expanded contract and coverage reimbursement. EndoGastric
Solutions has confirmed coverage for all Medicare enrollees through
Medicare Administrative Contractors (MACs)—CGS, First Coast, NGS,
Noridian, Novitas, Palmetto, WPS.

The Federal Register annually posts unadjusted average payments specific
to the CPT® code for physicians and hospital Ambulatory Payment Codes
(APC), allowing patients to receive access to treatment more easily for
GERD. For the TIF procedure, physicians can reference CPT Code 43210 EGD
esophagogastric fundoplasty and hospitals can reference APC 5362 Level 2
Laparoscopy Procedures. CPT is a registered trademark of the American
Medical Association.

About EsophyX® technology

The EsophyX technology is used to reconstruct the gastroesophageal valve
(GEV) and restore its function as a barrier, preventing stomach acids
from refluxing back into the esophagus. The device is inserted through
the patient’s mouth with direct visual guidance from an endoscope. The
U.S. Food and Drug Administration cleared the original EsophyX device in
2007. EndoGastric Solutions® launched the third generation EsophyX
device, the EsophyX Z model, in 2015. The evolving EsophyX technology
now enables surgeons and gastroenterologists to use a wider selection of
endoscopes to treat the underlying anatomical cause of GERD. These
options include lower profile and larger, high-definition models.


The EsophyX device with SerosaFuse® fasteners and accessories are
indicated for use in transoral tissue approximation, full thickness
plication and ligation in the gastrointestinal tract. They are indicated
for the treatment of symptomatic chronic GERD in patients who require
and respond to pharmacological therapy. The device is also indicated to
narrow the gastroesophageal junction and reduce hiatal hernia ? 2cm in
size in patients with symptomatic chronic GERD. Patients with hiatal
hernias larger than 2cm may be included, when a laparoscopic hiatal
hernia repair reduces the hernia to 2cm or less.

About EndoGastric Solutions®

Based in Redmond, WA, EndoGastric Solutions, Inc. (www.endogastricsolutions.com),
is a medical device company developing and commercializing innovative,
evidence-based, incisionless surgical technology for the treatment of
GERD. EGS has combined the most advanced concepts in gastroenterology
and surgery to develop the Transoral Incisionless Fundoplication (TIF®)
2.0 procedure—a minimally invasive solution that addresses a significant
unmet clinical need. Join the conversation on Twitter: @GERDHelp
Facebook: GERDHelp
and Google+: GERDHelp,
EndoGastric Solutions.

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