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EO2 Concepts President Joseph Moffett said the San Antonio company plans to raise as much as $12 millio over the next few months to commercialize its wound-care technology. CARLOS JAVIER SANCHEZ / SABJ
By W. Scott Bailey, San Antonio Business Journal
An Alamo City medical device company is ready to raise millions to commercialize new wound-care technology.
EO2 Concepts - which recently conducted a key study for its initial device, the TransCu O2 System - is preparing to raise its first public capital to help commercialize the advanced wound-care product.
San Antonio-based EO2 Concepts plans to raise $10 million to $12 million by the second quarter, company President Joseph Moffett said.
The TransCu O2, which has received clearance from the U.S. Food and Drug Administration, is an electrochemical tissue oxygenation and wound monitoring system that provides a continuous flow of humidified oxygen to a moist wound all day. It's a small device that enables patients to receive constant treatment without limiting their mobility, company officials said.
The new capital secured through the initial public fundraising will be used to launch the marketing needed to commercialize the TransCu O2, Moffett said.
"We are ready to go," he said. "We have a single class of stock with no preferential treatment. So it becomes very simple for someone to come in and take a position in the company."
Last week, I reported that EO2 Concepts had completed a double-blind study of patients with chronic wounds who were treated using the TransCu O2 technology. Patients and physicians involved in the study were not told which participants were wearing EO2 Concepts' device and which were being treated with a placebo.
Moffett said the study, somewhat rare for the medical device industry, demonstrated positive results for patients who received continuous diffusion oxygen therapy using the system.
"The company has spent the last six years investing most of its resources on clinical research - in search of evidence-based support for the technology," Moffett said.
But now, EO2 Concepts will need to tap into significantly more resources to commercialize its technology. With that in mind, Moffett traveled to San Francisco last week to attend the J.P. Morgan Healthcare Conference, a global event that was expected to attract hundreds of companies and thousands of investors.
"We met with about 15 different private equity groups and potential strategic partners," Moffett said. "It was very positive. There are a number of worldwide strategic partners who are interested."
All of this comes as the U.S. Centers for Medicare and Medicaid Services has proposed removing the investigational and nonpayable designation for EO2 Concepts' initial device, which limits commercial opportunities. If the nonpayable code is removed, EO2 could expedite the roll out of its device.
"That changes our commercialization appeal," Moffett said.