Mark Rentschler Presents Aspero Medical at LSI USA '23

Transcription

Mark Rentschler  0:05  

Thank you, Holly. Good morning everyone. My name is Mark Rentschler. I'm a co founder and CEO of Aspero Medical. And I'm excited that you're all are here today we want to share with you how Aspero Medical is advancing flexible endoscopy interventions, using our patented interventional balloon over tube. But before we go much further, I'd like to ask you a question. Did you know that one in 12 of us will be diagnosed with a gastrointestinal cancer in our lifetime. For these patients, that typically means an invasive surgery, such as a colon resection, I'd like you to just keep that in mind as we move forward here this morning. So flexible endoscopy is expanding as part of an overall shift towards less invasive procedures that have moved from open surgery to laparoscopic surgery, and are now moving to intraluminal endoscopic surgery, with an access through natural orifice. When compared to inpatient surgery, outpatient endoscopy offers a number of benefits. But there's a problem. Well, advanced tissue resections the key getting access efficiently is a barrier. What I mean by that is in das compass today are being asked to perform non invasive surgical procedures with technology that's over 50 years old. These advanced invasive surgical procedures require greater scope stability, they're addressing larger lesions and they're more complex. Now these procedures are being done, but only by a limited number of physicians and a limited number of institutions. Because the scopes and tools they're using haven't advanced in the last five decades. So what we're seeing is a widening gap between what the physician is being asked to do and the capabilities they're being provided with. And this is where sparrows products bridge the gap by seizing on the opportunity to offer greater scope stability, additional working channels, as well as additional tool access. Our solution is the core platform, which includes our patented texture, balloon technology and an interventional balloon over tube that a traumatically engages with the wall during these procedures. Our products offer a number of value proposition elements. The first is access, our balloon over tubes allow the physician to advance the scope while reducing the bowel. Our products offer greater stability, so the physician can more easily visualize the environment as well as manipulate the scope in advance the tools. Third is control. With our textured balloon over tubes, we can grip the wall of the lumen without injury. This allows for attraction of the tissue which is key during tissue resection procedures. And finally is usability. Our products offer an independent working channel for additional tool access, both with today's manual tools, as well as future endoscopic tool developments. This allows us to capture a larger market share and that we provide multiple value proposition elements to let the endoscopy niche choose one or two of these specific for what they're doing in their specific procedure. Now our first product is focused on small bowel enteroscopy where the problem we're solving is clinical access access to the small bowel for the physicians. From there we've been discussing with KOLs and observing market trends and we see a potential to expand the use for products to the upper GI gastric esophageal cavities, as well as large bowel and colon. And in doing this we're addressing the specific need of tissue resection. So our platform as you will see can be used across the entire GI tract from the upper GI to small bowel as well as the lower GI. Our second and third products addressed tissue resection in the upper and lower GI specifically focused on stability, control and usability of our product. Together this allows us to establish a total addressable market of around $1.5 billion worldwide. So why now? Well, we're observing a number of validation points that are pointing to this market trend towards these less invasive procedures specifically in endoscopy. And there's three points I want to share with you today. The first is payers want this insurance wants this. When you're comparing to an invasive surgical procedure that's going to cost 25 to $30,000. While comparison to an outpatient endoscopy procedure, you're looking at two to $3,000. So there's a tremendous savings opportunity here to do these procedures. endoscopically. The second point is reimbursements increasing. There is a wave that is happening today where we've seen a 30% increase in CPT code reimbursement just this last year. For these advanced interventional resection proceed pagers. This is signaling a recognition of the need for better devices to address these complex procedures. Then third point is this is an active space. There are competitor devices that are going through value analysis committees for well over $1,000, close to two to $3,000. We see these devices overly complex, overly expensive, and they don't address those four key value proposition elements I shared with you earlier of greater access, stability, control, and usability. So our first product is focused on small bowel enteroscopy. This will be launched later this year. It's specifically designed to mate with current capital equipment and dovetail into the solution offering a better product with greater access. From there, we're leveraging the regulatory and manufacturing strategy we've established with the small bowel product to advance and accelerate our large bowel product, which will be launched next year, followed by the upper GI product a year later. Now, just to reiterate, we're not a scope company. We're not a tool company. We're a balloon over tube access company. Our core platform works with existing scopes, and existing tools. And while we have a platform with three products used throughout the GI tract, they're all very similar. And from a sales and marketing standpoint, they all have the same call points, the same commercial team, the same physician training, and they're all built from the same novel A sparrow technology. So as I'd mentioned, we're bringing the core a small bowel product to the market later this summer. That'll be followed by an NIH funded comparison study to demonstrate the superiority of our product against the gold standard on the market today. From there, we'll be launching the large bowel product next year, and the upper GI gastric and esophageal product will launch a year later. Our pricing strategy is built on market research working with a third party named monarch partners. As we successfully launched these products, our initial focus will be working with independent sales reps, overseen by experienced sales leadership through a limited US market launch. But ultimately that will transition to a nationwide sales effort looking at around $100 million in revenue about five years out. So we have a very experienced team both clinically as well as on the engineering side and medical device. I'd like to share just a couple of points with you all today. A sparrow medical is my second startup as I was the director of operations for surgical robotics company named Virtual Incision. I'm a co inventor of our technology and a senior member of the National Academy of inventors. Dr. Steven Amanda wits has over 30 years of experience in endoscopy as well as entrepreneurship and endoscopy. Dr. Mundo wits is a Kol in this field, and he's been the president of the American Society for Gastrointestinal Endoscopy. He leads our expanding clinical advisory board and we're planning studies with these killer whales is test sites for our products. Our IP strategy is to focus on us protection while expanding out to Western Europe and Japan. We have multiple issued patents today with several other patents pending. A sparrow medical has been successful in securing over $4 million in non dilutive grant funding. And we're also pursuing additional $2.5 million in grant funding that's pending. The other 20% of our funding has come through to seed rounds of equity funding. Our focus has been to be a capital efficient medical device company and getting our first product through the FDA this summer for less, or just over a million dollars in equity funding is gonna be a significant accomplishment for our team. We're here at LSI seeking interested investors for our Series A round, we're seeking $6 million in syndicated funding and see this is potentially the last money in before we reach cashflow positive and a potential exit several years out. I look forward to answering any questions and sharing more of our plans with you all if you're interested in following the presentation. Again, I want to thank you for your time and I invite you to join us on our journey in advancing flexible endoscopy interventions. Thank you