NeoGuide Systems Closes $25 Million in Series C Financing

$25 Million to Fund Commercialization of the Company’s Breakthrough Computer-Assisted Colonoscopy System

NeoGuide Systems Inc., a developer of technology to prevent and treat colorectal cancer, recently announced that it has raised $25 million in its Series C round of financing. NeoGuide is developing the NeoGuide Endoscopy System, a computer-assisted colonoscopy system designed to enhance physician control of the colonoscope and to eliminate looping, the principle reason why conventional colonoscopy is painful, time consuming and difficult. The Series C financing will be used to fund commercialization of the NeoGuide Endoscopy System in the United States, including ramping up manufacturing and the sales and service organizations.

The London-based Advent Venture Partners led the round. Advent was joined by existing investors Versant Ventures, Utah Ventures, 3i, Kaiser Permanente Ventures, Arboretum Ventures, SBV and The Angels Forum/Halo Fund. Rockport Venture Partners also participated in the round.

Amir Belson, MD, co-founder and president of NeoGuide, said, “We are very excited to be joined by Advent, one of the leading venture firms actively investing in Europe and the US. We look forward to working closely with them and the rest of our exceptional group of investors as we embark on the commercialization of the NeoGuide Endoscopy System.”

Colorectal cancer (CRC) is the second leading cause of cancer deaths in the United States, yet it is highly preventable. Colonoscopy is considered the gold standard for CRC screening as it is the only screening method that allows the physician to inspect the entire colon and remove adenomatous polyps, the non-cancerous growths that have the potential to develop into colorectal cancer. Studies have shown that screening colonoscopy and the removal of polyps can prevent the vast majority of CRC cases.

In conventional colonoscopy, a flexible endoscope is inserted into the colon, which is essentially a flexible and highly tortuous tube. Advancing the colonoscope displaces the colon and stretches the surrounding tissue, a phenomenon known as looping. Unlike conventional scopes, the NeoGuide colonoscope is built out of multiple segments that can be actively controlled. As the physician inserts the NeoGuide scope, the system automatically creates a three-dimensional map of the colon and then directs these segments to follow the path taken by the tip.

Shahzad Malik, MD, general partner at Advent Venture Partners, said, “NeoGuide has developed technology that we believe will have a major impact on colonoscopy, and in time, other endoscopic procedures. The phenomenon of looping in colonoscopy severely limits the procedure. Through its ease of use and associated efficiency gains, NeoGuide’s unique solution will provide significant benefits to patients, physicians and the health-care system.”

NeoGuide received FDA clearance of its NeoGuide Endoscopy System earlier this year and expects to begin commercialization in 2007.