Neo Medical develops a new generation of controlled-fixation solutions designed for a more Functional Fusion in spinal surgery, respectful of patients' unique spinal conditions
Neo Medical, a Swiss Medtech company developing disruptive solutions to achieve a more Functional Fusion in spinal surgery, announced today the closing of a CHF 13.2Mio (13.4M USD) financing round. The funds will be used to finance the company’s global growth and expansion in targeted key markets.
Neo Medical has developed a universal surgical platform, including five instruments and fourteen implants only, covering most spine indications. This unique platform includes a proprietary Controlled-Fixation technology designed to enable a post-operative more anatomically neutral, balanced, and stable spine. The company’s solutions enable spine surgeons to limit stress overload on patients’ spines, thus potentially reducing risks of screw loosening, hardware failure, and eventually further reducing re-operation risks, while improving overall patient outcomes.
Thanks to a highly optimized product platform, advanced manufacturing methods, and a single-use approach, Neo Medical dramatically reduces the environmental footprint of spinal fusion surgery by 75% versus legacy reusable systems.
With a global approach, Neo Medical currently focuses its effort on five strategic markets: the USA, Germany, Spain, Switzerland, and France. The company received CE and FDA approvals for its pedicle screw system in September 2016 and September 2017 respectively, and for its cages in January 2020 and December 2019. Since market launch in Q2 2017, Neo Medical products are now being used in 250 hospitals worldwide, with over 90% of surgeries coming from recurrent users. The company aims at doubling its sales on a yearly basis, and it has delivered a 63% growth in Q1 2020 despite the global pandemic context.
Along with the financing round, Neo Medical announced that two leading Medtech professionals are joining the company Board: Michel Orsinger as Member, and Oern Stuge as Chairman of Neo Medical Board of Directors.
Michel Orsinger led the largest orthopaedic company DePuy Synthes from 2012 to 2015, following the sale of Synthes to Johnson & Johnson. As a member of J&J’s global management team he then established the largest and most comprehensive global orthopaedic company. He has acted as Worldwide Chairman of Global Orthopedics DePuy Synthes within Johnson & Johnson from 2012 to 2015, where he was a member of the Global Management Team. Michel Orsinger joined J&J following the sale of Synthes Inc. for $20 billion in 2012. Previously, Michel Orsinger held the position of COO and then CEO at Synthes from 2004 to 2012. His health care experience started with Novartis, where he held different global divisional leadership roles.
Oern Stuge, MD, is Chairman & CEO of Orsco Life Sciences AG. He had a 12-year experience at Medtronic Inc. where he held several senior leadership positions, including Senior Vice-President & President Europe, Canada & Emerging Markets, and member of the Executive Committee & Operating Committee. He then served on different Boards, which to date led to five successful exits and two successful IPOs. Prior to Medtronic, Oern held senior management positions at Abbott Laboratories, and acted as CEO of a Norwegian start-up. Oern began his career as a practicing physician and has an MD from the University of Oslo and an MBA from IMD in Switzerland.
Oern Stuge commented, “I am excited about the opportunity to serve on the Board of such an innovative company and to contribute to carrying Neo Medical’s unique value proposition into healthcare systems and institutions worldwide. Beyond providing solutions tailored to patients’ needs, Neo Medical’s value-based care approach participates in preserving the overall sustainability of the broader healthcare system.” Michel Orsinger added “There are exciting times ahead for Neo Medical and I look forward to bringing my contribution to support the company deliver more viable options that can be adjusted to patients’ individual situations with the aim to further improving overall outcomes in Spinal surgery.”
“The CHF 13.2Mio financing round announced today is an important milestone for Neo Medical as we look at scaling sales and distribution up in our five strategic markets. Surgeons have validated our Controlled-Fixation value proposition to prevent stress overload on patients’ spines and tackle implant failures and loosening, while further improving patient outcomes. We look forward to bringing this value proposition to more hospitals and patients worldwide,” said Vincent Lefauconnier, CEO of Neo Medical. “Along with Neo Medical co-founder Jonas Larsson, we warmly welcome Michel Orsinger and Oern Stuge. Their extensive experience brings significant added expertise to our Board.”
The financing round is led by 4FO Ventures. Historical shareholders, including Credit Suisse Entrepreneur Capital Ltd. as well as new partners such as Investiere, participated in the capital increase.
Jean-Pierre Rosat, PhD, Founder and General Partner of 4FO Ventures adds: “We are very enthusiastic about this new investment. Neo Medical has the potential to change the way spinal surgery is performed. The combination of innovative technologies and a highly simplified and universal disposable set of tools is extremely powerful, and a real added value for patients and surgeons. In addition, the excellent team of Neo Medical has the skills to lead this company to success.”
Source: Company Press Release