Med tech start-up receives €1.6m venture investment

20 Sep 2011

Font row: Dawn Guiney, Kernel Capital; back row, from left, Seamus Bree, West Region director, Enterprise Ireland; Dr James Browne, president, NUI Galway; Barry Russell, CEO, NeoSurgical and Jack Harty, senior business development adviser, Bank of Ireland

NeoSurgical, an emerging Irish medical devices company that develops innovative products intended to make laparoscopic abdominal surgery safer and easier, has received a €1.6m investment from a consortium of investors.

The syndicated investment comprises of a €500,000 investment by the Bank of Ireland MedTech Accelerator Fund, with the remainder of the funds provided by Enterprise Ireland and a number of private investors, including experienced promoters from the Irish med tech industry. 

NeoSurgical, working in collaboration with practising surgeons, is committed to developing and delivering innovative products that enable simpler, safer and more efficient laparoscopic abdominal surgery for better patient outcomes.

The company’s lead product NeoClose offers a new method of closing laparoscopic wounds that can reduce or prevent herniation complications while giving hospitals the opportunity to realise cost savings.

Irish med tech start-ups attack global market

“This investment will enable us to complete our device development and take our place in the global med tech market,” Barry Russell, CEO, NeoSurgical Limited, explained.

“NeoClose is the first in a portfolio of medical device projects that NeoSurgical plan to develop to market in the coming years with the associated positive spin-off to the Irish economy in terms of high-value jobs and exports.”

Donal Duffy, head of Enterprise Ireland Relations, Bank of Ireland, said: “Bank of Ireland is very pleased to add NeoSurgical Ltd to the list of companies supported through the Bank of Ireland MedTech Accelerator Fund managed by Kernel Capital. This funding will enable the company to develop and deliver innovative market-leading products and take their place in the global med-tech market.”

Laparoscopic or minimally invasive surgery within the abdomen involves ‘keyhole’ incisions, some of which may require closure.  Ineffective closure can lead to an operative complication called a hernia, the complication rate of which is published to be in up to 3.1pc and can be significantly higher in obese patients. In the US,it has been estimated to cost the healthcare system in excess of $20,000 per patient to repair the hernia.

“NeoSurgical is an excellent start-up, we are impressed with their cohesive team, whom previously held senior executive positions in Johnson and Johnson Ireland. NeoSurgical has developed a strong patent family, excellent product road map and the team has vast global experience in selling medical device products,” said Dawn Guiney, Kernel Capital.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years