Irish company Ostoform is pursuing patent trials that will support regulatory approval in the US.
Ostoform, the creator of a breakthrough surgical seal system for patients with colostomy bags, has raised €1.1m in a funding round led by HBAN’s MedTech Syndicate.
HBAN invested €280,000 in the round with further participation from SOSV, Enterprise Ireland and other angel investors.
‘Approximately 1m people per year in Europe and the US have an ileostomy or urostomy’
– KEVIN KELLEHER
The investment will result in the creation of five new jobs.
Dublin-based Ostoform was set up to address the management of a stoma, a small surgical opening on the surface of the abdomen to divert the flow of waste. A common complaint is irritation, redness and discomfort around the skin caused by leaks of the acidic content contacting the skin.
Necessity is the mother of invention
The need for a solution to colostomy skin problems was first identified when CEO Kevin Kelleher and Rhona Hunt took part in the BioInnovate Ireland programme at the University of Limerick.
The company has developed the Ostoform Seal with FlowAssist. This is a seal that is secured to the skin around the stoma to effectively guide the acidic stoma output into the colostomy bag, thereby preventing it from contacting the skin.
“Approximately 1m people per year in Europe and the US have an ileostomy or urostomy, with some finding it very difficult to adapt to stoma management post-surgery,” explained Kelleher. “The patented Ostoform Seal with FlowAssist aims to reduce the discomfort of dermatitis that often happens with this type of procedure.
“This investment is not just financial; the angel investors bring invaluable expertise and experience that will help us to scale. We now have business people involved who have already gone through the process of patient trials with the FDA in the US and the CE mark certificate in Europe,” said Kelleher.
Since 2007, HBAN angels have invested €89m in 429 separate deals. Together with investments from other funds amounting to €144m, an overall total of €233m has been put into these Irish start-ups over the last 11 years.
“Kevin is a driven and dynamic entrepreneur, and there is a growing global need for the patented Ostoform devices,” said Declan Quinn, lead angel for the HBAN MedTech Syndicate. “We expect an excellent return on our investment, with the added satisfaction of knowing we are helping millions of people worldwide who will benefit from the Ostoform devices.”
Disclosure: SOSV is an investor in Silicon Republic