Medigus’s share surges by 90% following first MUSE deal
27 July, 2016
The renowned US health center purchases the MUSE console and device to offer GERD patients a minimally-invasive treatment option
Johns Hopkins Hospital purchases the MUSE console and device to offer GERD patients a minimally-invasive treatment option, Medigus’s Share leaped in the hours following the announcement
Medigus, an Israeli medical device company developing minimally invasive endosurgical tools and direct visualization technology, today announced that Johns Hopkins Hospital, an integrated global health enterprise and one of the leading health care systems in the United States, has provided an initial purchase order (PO) for its MUSE system. The PO covers the cost of a MUSE system console and endoscopic device, which will be available for use on eligible patients suffering from GERD. In the hours following the announcement, Medigus’s share leaped by up to 90%.
60% of adult population suffers from acid reflux
According to experts, 60 percent of the American adult population will experience some type of GERD within year and 20 to 30 percent will have weekly symptoms. GERD, the medical term for acid reflux, occurs when the base of the lower esophageal sphincter doesn’t properly close after swallowing, which allows acids to back up (or reflux) into the esophagus, causing discomfort. Though patients may experience symptom relief through acid-reducing medications called Proton Pump Inhibitors (PPIs), these do not treat the anatomical source of GERD, leaving opportunity for the disease to progress to a more severe condition, including esophageal cancer.
The Medigus Ultrasonic Surgical Endostapler, or MUSE system, is a single-use flexible transoral stapler that merges the latest advancements in microvisual, ultrasonic and surgical stapling. The device is equipped with an ultrasonic sight and range finder and a micro ScoutCam CMOS camera, which enables a single physician to perform an incisionless transoral fundoplication — the procedure intended to treat the anatomical cause of gastroesophageal reflux disease (GERD). The MUSE system is FDA cleared and CE marked for the treatment of GERD. MUSE also has obtained the necessary licenses to market the product in Canada and Israel.
“We thank Johns Hopkins for its recognition of our technology as a minimally-invasive modality that addresses the widening gap in GERD treatment between drug therapy and invasive surgery,” said Chris Rowland, CEO of Medigus. “GERD is a pervasive disorder that has the potential to worsen into more severe conditions if not properly addressed at the early stages. We are proud to have this interventional endoscopic treatment be available to Baltimore area patients.”
A positive turn after turbulent times
Yesterday’s announcement comes after turbulent times for Medigus. Only last June, the company laid off as much as 10% of its employees in Israel and the US. In Q1 2016 the med-tech company reported a $2.9 million loss while revenues totaled $262K.
The system sold the renowned hospital is actually a second version of the product – the first version failed after it was found to be unsuitable for use. Following the failure of the initial launch, Medigus upgraded the MUSE system and conducted a large scale medical trial, which was successful. The new deal with Johns Hopkins Hospital is very good news for Medigus – but it remains to be seen if the company will be able to bear the brunt of heavy R&D costs. It seems that the med-tech company will have to raise more funds to translate its current successes to a lasting one.