NeoSurgical Raises €4.9m In Funding Round

30 Jun 2017 | 10.19 am

NeoSurgical Raises €4.9m In Funding Round

Accumulated losses of €9.7 million

30 Jun 2017 | 10.19 am

Galway medtech company NeoSurgical, which has a focus on advancing surgical wound healing, has raised €4.94m in second-round funding from three Texas investors.

The company said the funding will be used to expand the development, manufacturing, and commercialisation of the company’s NeoClose product platform. NeoClose is billed as a simple and reliable solution to assist the surgeon in closing port site defects, up to 3cm, following laparoscopic abdominal surgery.

In December 2014, NeoSurgical tapped a San Antonio investment fund for €4.5m, and that investor has followed on in the latest funding round.  Company chairman Pauric O’Grady commented: “NeoClose is achieving rapid adoption in the US and the company has recently entered into an exclusive European distribution agreement with Medtronic, one of the largest global leaders in healthcare.”

The company says that NeoClose has been used more than 25,000 times in hospitals across the United States.

NeoSurgical was founded by Barry Russell in 2008. He qualified as a medical device R&D engineer and worked with Boston Scientific before joining Johnson & Johnson in a sales role in 2000. Russell resigned from his CEO  and director role at NeuSurgical in June 2016, and in January 2017 he was appointed managing director of Promed, which services the primary care market in Ireland.

Neosurgical Ltd booked a net loss of €2.1m in 2016, bringing accumulated losses to €9.7m on the back of equity capital of €8.3m. there was a deficit of €1.4m in shareholders funds in December 2016 and that has now been sorted with the funding round.

NeoSurgical employed 10 people through 2016, with the total staff costs amounting to €770,000

 

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