Medigus rebrands reflux treatment device

The company has also updated its commercial strategy.

Medigus Ltd. (TASE:MDGS), which develops and markets minimally invasive endosurgical tools and procedures including a device for treating gastro-esophageal reflux disease (GERD) as an alternative to surgery, has rebranded its flagship product, and updated its commercial strategy. The company also reported that an agreement with a supplier micro cameras has been cancelled.

As a part of the strategic plan, Medigus said its goals for 2014 are: launching sales of its product for the treatment of GERD, newly branded MUSE (formerly the SRS System); maintaining and improving existing FDA and CE approvals; pursuing clinical and peer-review publication goals to increase credibility and physician awareness while promoting insurance reimbursement recognition; establishing 10 “centers of excellence” in the US and 10 in Europe utilizing the MUSE system by the end of 2014, who will be leaders in carrying out the procedure and spreading the word about the product throughout the medical community.

Medigus’ product was approved for marketing in mid-2012, but in the first three months of 2013, the company reported revenue of only NIS 1.6 million.

Based on the company’s statements, it seems that also this year the company will continue to take steps that are intended to open the market, despite the fact that the expectation is for sales to rise, there is much work to be done before the company reaches next level of revenue. Since the announcement, Medigus’ stock is up 2.2%, and the company is trading at a market cap of NIS 90 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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