Matt Ginn Presents IQ Endoscopes at LSI Europe '23

IQ Endoscopes is creating pioneering, sustainable endoscopy technologies for the early diagnosis of diseases, helping to create a world where everyone has access to sustainable sterile endoscopy.
Matt Ginn
Matt Ginn
CEO, IQ Endoscopes



Matt Ginn  0:06  
Good morning, everyone. It's a pleasure to be here with you today. My name is Matt Ginn. I'm the CEO of IQ endoscopes. And I've been with the organization since its inception in 2020. Before I go through the slides and talk about the problem that we're trying to fix, I'll just give you a little bit of background to the organization. We're based in South Wales in the UK in Chepstow. We're a business around about 25 to 30 people at the minute all, all directly employed. And to date, we've raised about 12 million pounds of funding to get us to the stage where it's at the minute, we are all acutely passionate about the fact that anyone anywhere in the world should have access to safe and sterile endoscopy, which is unfortunately not the situation at the minute. So what's the problem that we're trying to solve? So we work in the world of flexible endoscopy. And from 2023 to 2027, the number of flexible endoscopy that will take place around the world is forecasted double, it's going to go from 70 million up to 140 million. And that's driven by three major factors. Number one is that we're all living longer. So the aging population, the world is getting larger. So throughout our lives, we're gonna pick up some symptoms. Number two, there's more prophylactic screening programs happening for people over the age of 40 to 45, in most developed countries. So even though we might not be symptomatic, we're going to be screened and we're going to pick up issues that need to be diagnosed. And there's a general preference for endoscopic based technologies now versus traditional open approaches. So that's driving the need for the for the demand for flexible endoscopy. And to give you an idea of all that volume, about 75% of it is called diagnostic. That's where there's an active symptom, there's an active problem, and the patient needs a camera placed through a natural orifice to have a look at what's happening in sight. In the UK, and we're a UK based company, if you have a symptom, you should be seen within two weeks. And at the minute, there's over half a million patients on a backlog who are not being seen within that two weeks. So the impact of that is by the time they are seen and then they treated. What could have been a very early stage disease could be later on with significant problems. So you think okay, so endoscopy has been around for a long time, there's some formidable technology that treats it so why can't they cope with the problem? Well, the current technology is reusable by nature. So they're formidable scopes from Olympus, Pentax Fuji all the big, big corporates around the world, but they need washing and cleaning between patients. So if you want to treat more patients, you've got two choices, I might need to buy some more scopes, there are a heavy capital item, which comes with a service and maintenance contract. And then between patients I have to send that scope to be reprocessed and decontaminated. That will take time. That process is a regulated set timeframe, that will take the same amount of time every time. So in a day, you're your capacity of scope. So your inventory of scopes can only be used a certain number of times. And then when you want to look at where you treat that patient. If you rely on decontamination you probably want to be based or treat that patient near to the decontamination center and not diversify the point of care into the community. So it's not that the current technology is not good enough to cope with the demand. It cannot scale itself quickly enough because of the decontamination or reprocessing reliance and the capital investiture. So single use is not a new idea. It's been around for quite a while for quite a long time. But what we saw is COVID-19 has absolutely accelerated the need for it. And in more simple procedures like uterus recovery, bronchoscopy, cystoscopy, it's now being used widely in both the acute and the community settings. And it's been proven to help increase the flow of patients because you can treat more patients in a quicker time, it will lower the cost of endoscopy by moving it from a capital item to an optic site in which you can then place against reimbursement. But more importantly, it means you do not have you do not to situate you do not need sorry to situate your place of treatment near the decontamination suite, you can move patients across the hospital and into the community. So until now, in the biggest market of Gi so gastroscopy and colonoscopy, there's not been a company that's been managed to really replicate the feeling of the reusable device, the ergonomics of the use of reusable device at the right cost and with the right approach to sustainability. And that's what we've been trying to do for the last three years at IQ endoscopes. So we have a really novel platform. It's a reusable base unit, and then a range of single use scopes that are specifically designed to address the GI needs. We've really worked hard at looking at the ergonomics, both from a qualitative and quantitative point of view of Reusables. And then replicated that through some novel designs and patterns using single use materials to give the physician the same experience. But what we've done as well is really looked at the environmental impact of that and come up with a full sustainability strategy and then realize that okay, the demand is going to be very high. So this has to be able to be manufactured at scale at a very low cost of goods, and all of those things we all have those three things we've been able to achieve. So when I joined the business in 2020, on this side of the screen, there were two founders, there was Patrick, who was a community endoscopist, who treated about half a million patients in the East of England. And he partnered with Andrew, who's our CTO who's got an automotive background with extensive materials and polymers expertise. I brought onboard experts from the med device industry, some of the faces you might be able to recognize from previous exceptional organizations. And then we built ourselves a strong investor base with Creo medical BGF, the development bank of Wales and Australian unity, all participating in our last three rounds. So our scope or a range of scopes has been specifically designed by clinicians, for clinicians. And when you look at endoscopy, an endoscopist is looking at the screen scoping multiple patients every day, they don't want to think well, what am I controls here, am I using a different device, it has to be familiar. So we've made a handpiece that's suitable for the smaller hand and the female hand, which is a big problem endoscopy in a minute. We've got novel braking, locking and various stiffness technology in the scopes, and a really neat distal tip design that powers both led and fiber optic technology to give the right experience. But furthermore, what we've taken is Andrews modular approach from the automotive world and brought it into med device which was a really attractive parallel for me, our base unit has got all the expensive parts and it contains all the optics, the electronics, the pneumatics, the video processing the data processing, and we make sure that all the expensive technology is in that base unit. That's a reusable parts of the device. Everything that connects to that base unit is single use. The graphic is slightly misleading the the insertion tubes are not separate to the scope, it's to show that the same technology can have various insertion tubes, but it's all based around the same modular handpiece. So whether you're doing a gastroscopy or cystoscopy, a bronchoscopy or sigmoidoscopy, you will have the same feeling from our product, which gives you the same ergonomics. That modular design means that we can fully automate our manufacturing lines behind the scenes and drive a cost of goods that will make it affordable to the end user in what is a very tightly reimbursed procedure. So our go to market products consists of three products, there's a gastro scope, a kaleidoscope and a sigmoidal. Scope. And that will enable us to address over 130 million procedures worldwide. We've We've focused really hard on the affordability, the clinical familiarity, so there's no clinical or clinical training needed, the performance has to replicate that the state of the art reusable device. Our sustainability strategy means that we know we're not going to be doing harm to the environment. And we've got a real focus on high volume manufacture. But entering the market is just the beginning for us, we've got a commercial plan that will bring us into the market at the end of next year. We've done already added new technology onto that first platform, we've got an improved optical system where you can change the wavelength and the spectrometry of the light. And we're also working on a scope positioning system that will give you almost like a GPS sense of where that scope is within the body. We're now working exceptionally hard in parallel with the Welsh Government to make sure that we've got everything right in the recyclability and the sustainability of the product. From our IP portfolio, we focus really hard at what have we done to protect that ergonomics, how can no one copy what we've done, and we've looked at the ergonomics and the optical performance is our first two priorities. What we're focusing on between now and 27th is expanding that into new technologies and sustainability to make sure that we gain clear water and we can have a blue ocean for us to play into. People will know that there are many other single use players out there, there are the bubbles are the different types of procedure. Within duodenal Skippy, bronchoscopy and Cystoscopy. Those markets are already quite crowded, there are many players who are offering a range of products across all those areas. But you'll see that their procedure numbers are relatively low in comparison to GI, and the average selling price has come down over time, where IQ we're going to focus is we're going to focus on GI and gi only, we're going to go deep and narrow into that space to ensure that we can have everything from diagnostic to full therapeutic capability on our device. By doing that, and enhancing the technology will not only be able to address the full 130 million procedures, but we can make sure the technology does not mean that the price comes down. And we can keep forming a non commoditized market. We've got a plan at the minute to deliver revenues of up to 30 million and we can see profitability by 2028. But to do that, we need a bit more money, hence why we're all here this week. So we're currently raising about 50 more million to get us there to commercialization by the end of next year. We've raised three rounds so far, which may, which made sure that we right we we manufactured the prototype, which were regulated, and then we took that prototype and redesigned it specifically for high volume engineering and manufacture. We've now got to carry out our V&V programs to get regulatory approvals, submissions in by the middle of next year with commercialization by the end of next year. Slightly over time, so I do apologize, but that is how we're looking at it's another strong technology from the UK. And we really do believe that anybody anywhere in the world should have access to safe and sterile endoscopy. Thank you very much.


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