Medical devices company succeeds in first funding round

UNIVERSITY spin-out specialist Fusion IP’s medical devices portfolio company Asalus Medical Instruments has raised £450,000 in its first funding round.

The boost will enable Asalus, which was launched last January, to advance its three new laparoscopic devices through preclinical development.

Both of Sheffield-based Fusion’s investment partners, Finance Wales and IP Group, participated in the round.

The funding represents IP Group’s first investment in a Fusion IP portfolio company under the agreement between IP Group and Fusion that was signed in November 2009. It is the sixth Fusion company Finance Wales has invested in since the MOU was signed over two years ago.

Asalus is developing a range of innovative medical devices to improve the safety and efficiency of laparoscopic surgery.

Laparoscopic surgery is a modern surgical technique in which operations in the abdomen are performed through small incisions, as compared to the larger incisions needed in traditional surgical procedures.

There are several benefits to conducting laparoscopic surgery and the number of procedures conducted using this technique has grown rapidly over recent years. More than 2m laparoscopic operations per year are now performed in the USA alone.

The three products that Asalus is developing include a smoke and steam clearance device that represents a paradigm shift in the way in which electrosurgical smoke is removed from both minimal access and open surgical procedures, an access port, and a multifunctional device for the atraumatic manipulation of tissues and organs.

The company plans to secure further funding by the fourth quarter of 2010 to  allow it to complete the development of the devices, after which licensing partners will be sought.

David Baynes, chief executive of Sheffield-based Fusion,  said: “I am delighted to welcome Finance Wales and IP Group as investors in Asalus. Development of all three devices has progressed well and this funding will allow the company to take significant steps forward in both its clinical and regulatory development pathways.”

Dominic Griffiths, portfolio investment manager of Fusion Cardiff and director of Asalus said: “Successfully completing the rigorous due diligence conducted as part of Asalus’ funding round validates the commercial potential of our devices.

“We welcome Finance Wales and IP Group as investors and their experience puts the business on a stronger footing as it seeks to validate the devices in this exciting preclinical testing phase.”