EDGe Surgical: $4 Million New Series A Financing

Funds a Single-Use, Digital Electronic Depth Gauge. Better Screw Placement

EDGe Surgical, Inc. has announced $4 million in new, Series A funding. The round is structured as an equity plus convertible note, bringing total Series A financing to date to $5.7 million, all from angel investors. “Proceeds will be used to pay for increased manufacturing, marketing” and working capital to support “the company’s first device, the EDG Ortho 65mm, as well as development and launch of a second spine surgery device.”

“The EDG Ortho 65mm is the first and only single-use electronic depth gauge. It is designed to more accurately measure length for orthopedic surgical screws, and also mitigate bioburden contamination, a leading cause of surgical site infections. EDGe Surgical’s device provides healthcare professionals, hospitals, and outpatient medical facilities with a digital alternative to analog depth gauges for greater accuracy at a decreased cost, all while mitigating infection risk.”

“The positive reception we’ve received from surgeons to our pilot launch, which started earlier this year, illustrates that our device fills a major market need for a depth gauge that enables more accurate screw selection without the worry of bioburden contamination risk,” said Christopher Wilson, president and CEO of EDGe Surgical.

“We appreciate the continued support of our sophisticated angel investors, who bring surgical and medical device C-suite expertise, to help us quickly move the needle. Closing our Series A round will allow us to expand availability of our EDG Ortho 65mm and develop additional new products to serve customers seeking cost-effective and highly advanced solutions.”

“Until now, the most common approach for orthopedic surgical measurement has been using a traditional analog depth gauge with a sliding metal scale to determine drill depths and screw lengths. The EDG Ortho 65mm is designed to, the company explains, to overcome the drawbacks of these traditional depth gauges.” The advantages, say EDGe Surgical, are:

• “Up to 20 percent of measurements using the traditional analog depth gauge are inaccurate. Mis-measurement is a leading cause for wasted screws/implants, which is estimated to cost healthcare systems $200 million a year.
• Traditional analog depth gauges are reusable by design and require sterilization. A recent study at a university hospital Level 1 trauma center raised questions about the effectiveness of this sterilization process.
• Per case costs associated with using a traditional depth gauge are estimated by the Company to be greater than $400, with traditional device downsides including bone non-unions, implant-related complications, infection risk, and unnecessary radiation exposure.”

The Company maintains that its EDG Ortho 65mm can reduce costs by being more accurate (i.e., less wasted screws), reduce infection risk, and deliver greater measurement consistency.

“For example, the EDG Ortho 65mm reduced measurement error by up to 90 percent in recent cadaver and sawbones accuracy labs…,” said EDGe Surgical. “A study presented at the 2018 Annual Meeting of the American Society for Surgery of the Hand (ASSH) found a significant reduction in the rate of major measurement error in sawbones models compared to the traditional analog depth gauge.”

Christopher Wilson told OTW, “Our Series A funds are being used to increase inventory of our current device size—the EDG Ortho 65mm is a great fit for the small fragment market—as well as to design and launch a number of different sizes of the same technology aimed for the mini and large fragment markets.”

“EDGe Surgical’s second device is a spine device that utilizes the underlying technology as their ortho device but is designed specifically for the needs of a spine surgeon. The device will include both digital depth measurement and neuro stimulation/monitoring capabilities.”