Scott Aldrich Jr., EndoSound - Endoscopic Ultrasound System | LSI USA '24

Scott Aldrich Jr.  0:03  
I'm here as the CEO of endosound, I'll introduce you to our endosound visualization system. So what we are is we enhance ask, enhance access, reduce costs and increase the safety profile of endoscopic ultrasound. And by doing so, we help drive global health equity through echo endoscopy. Our leadership team is really core and centered around Dr Steven Steinberg, who's one of the highest volume therapeutic gastroenterologists in the United States, as well as Scott Corbett, who has a pedigree, strong pedigree, and a entrepreneurial history within the and the ultrasound technologies. So what is endoscopic ultrasound? For those of you that don't know, it combines two standard technologies. The first is video endoscopy, which is white light endoscopy that provides visualization of the lining of the esophagus in the stomach, and it combines it. So we also have ultrasound, which is obviously grayscale imaging from the outside in. So what we do is we they combine and both those technologies into one core technology, which is a critical technology standard of care called endoscopic ultrasound, and it provides visualization endoscopically from the outside in with the ultrasound, grayscale imaging. So who may benefit from these, these procedures, endoscopic ultrasound, so any patient that has abdominal pain of unknown origin has esophageal lung, stomach cancer, rectal cancer or potential for pancreatic problems. But what endoscopic ultrasound allows the physician to do is screen for pancreatic cancers or liver disease or biliary strictures. It's a treatment and diagnostic tool for these clinicians, as well as a therapeutic tool for these clinicians to provide targeted therapy. It is the gastroenterologist number one line of defense in diagnosing and treating a lot of these gastroenterology cancers that are highly prevalent. So what do we do? Well, we've invented the endosome vision system, which is a tool that converts any standard gastroscope found in any GI lab into an echo endoscope, and provides capabilities that an EU s scope does. The problem with its current technologies and the legacy systems on the market is is really threefold. First and foremost is their expense. So these systems are 350 to $400,000 for the systems, $500,000 in total, with the ultrasound scopes as well. But they're really cost prohibitive for adoption or mass adoption in much of the market. They're also costly and burdensome to maintain. Additionally, they're large, bulky systems that can't be transported from room to room, or lab to lab, or campus to campus, they really reside in one singular room that's dedicated in the endoscopy suite. And lastly, and probably most importantly, is the design flaw associated with the scopes. If you can look in the lower right of the image, you'll see in the channel of the scope a V shaped device, steel device that controls the articulation of a therapeutic device or needle during a fine needle aspiration. The problem with that device is there's really sort of, there's all sorts of channels and nooks in that area that are very difficult to clean through high level disinfection or eto gas sterilization, which is common for these devices. So they can be a harbinger of biological pathogens, which has been led to FDA recalls on the ERCP sister scopes, and really been of high note to the FDA and CDC as of late. So the endosome vision system, it's really a simple and elegant solution. It's clean and it's really effective overall. And what we do is we really take care of those three major objections to the legacy systems, where we provide a very affordable Assist system, so you can outfit a full Ultra endoscopic ultrasound system in a lab in a room for about 10% of the cost of legacy systems. That opens up, it opens up the doors to all new markets globally, as well as in the United States, we have superior flexibility. It's much more portable those floor based models that I showed you in the prior slide, that's now the size of an external hard drive, so it could be put in your pocket, in a briefcase and a suitcase, and brought to the next lab. And finally, we completely reduced the risk of any infection associated with these devices, so the portion of our device that controls the therapeutic device and or needle is single use disposable, so there really isn't any associated risk with utilizing our device from a patient safety protocol standpoint, we are do have a pretty comprehensive. Of patent portfolio, with seven issued and 12 pending. So just a better look at the device overall. Again, it's a simple system that adheres to any gastroscope. Has a single wire that controls up, down, angulation of the needle and the transducer. And again, that middle portion that has an aperture allows for passage of a device for any sort of therapy or biopsy, and that portion that controls the needle on the left side of the screen is also the portion of the device that's single use disposable our razor blade, if you will. So as we go after the market here, we just started commercializing in late January, so we're very early to sorry to in this year in terms of our commercial efforts, but we're going after the inventory surgery centers, where, for the first time, we can unlock that market. It's been super cost prohibitive with the legacy systems. It's been a market that hasn't been able to adopt the technology, but it's only been a cost, cost reasoning for for the lack of migration of this procedure. So we're going to ride that wave and take advantage of opening up a lot of these ambulatory surgery centers with the ultrasound line of service as a new line of service that's much more affordable for payers and patients and efficient for physicians, obviously preferred location, but obviously for the hospitals as well. So those that don't offer EUs already, we can open up EUs in more rural areas outside of major metropolitan areas, with tertiary accounts, but also those that do already offer it, but have backlogs on the some of these rooms where we can offer and open up second or third rooms to treat some of these patients, there's already established CPT coding For the procedure. So we're covered in terms of code coverage and payment. So it's a positive ROI from day one for anybody that adopts the technology, the devices themselves. So I talked about the portable hard drive size ultrasound scanner or beamformer. There's the ultrasound transducer, which is 100 uses. And finally, the EVS disposable device, which is which is disposable, single use. We're going out with a cost per procedure, so we're removing all barriers to adoption overnight. We don't have to worry as much about, you know, value analysis, analysis committees. We can easily get the procedure in a room outfitted again, quickly with the $500 price per procedure, which is a positive ROI for the facility and the patients, sorry, the facility and the physicians, we have a controlled market release to start this year. We're well on our way, already only commercializing in late January, to our $3 million number for this year. But see a significant ramp possibility the here and now is sort of that migration of procedures from the hospital to the ASC, as well as adoption of more hospitals, as well as some of the emerging markets for the technology. But where we see significant growth is in the idea that anybody that's getting an upper endoscopy for abdominal pain, they're looking at the esophagus in the stomach. We believe that we can now open up the opportunity to while they're doing that procedure, at our cost profile, you can get a much more full procedure on all of these upper endoscopies, where they can surveil the pancreas, the liver, the gallbladder, and look outside of just the lining of the stomach to see if they're abnormalities. So significant upside opportunity there. This is just sort of collecting it all together. So we're here today looking to raise our start into our series B. We're raising 15 million, but really just to scale our commercial organization, you know, some additional supply chain benefits there as well. This gets us to profitability in late 2025, in terms of our funding. To date, we've raised $11 million 7 million of that has been dilutive, and then 4 million of that has been non dilutive. Had a bunch of milestones already this year, sorry, over the last couple of years, but including, you know, Innovation of the Year Award from two of the major gi societies, we've had almost 200 plus procedures done to date, all successfully per indication. We got breakthrough device designation because of our safety and FDA clearance as of late December last year. So again, we're out in the field now with a small commercial team, but I'd love to connect. I'd love for anybody that wants to sort of, you know, follow our journey and share in our success. I'd be happy to connect. Thank you very much for your time. You.