A small public company based in Miami - SafeStitch Medical - has raised $3 million in a private placement, according to a filing with the Securities & Exchange Commission. The company trades over the counter on bulletin boards.
In January, SafeStich Medical announced that its pilot clinical study to test its transluminal devices was able to "restrict gastric acid reflux in three patients and to cause meaningful weight reduction in two obese patients after two years." There were seven patients in the trial.
"By going through the mouth, there is less risk of infection, and only conscious sedation is required," said said Dr. Charles Filipi, Chief Medical Officer at SafeStitch Medical, the lead on the clinical trial and inventor of the devices, in the new release. This should result in lower costs for bariatric and GERD surgery."
The company intends to expand the clinical study and file for an investigational device exemption later this year. An email to a company spokeswoman wasn't immediately returned.
Aside from the GERD and obesity devices, which are being tested, SafeStitch Medical sells the AMID Hernia Fixation Device.
The company was founded under a different name in 2005 and did a share exchange with the publicly-traded Cellular Technical Services Co. and became a public entity known as SafeStich Medical in 2007.
-- Arundhati Parmar, Senior Editor, MD+DI