Surgiquest

Market position

SurgiQuest competed in the minimally invasive surgical access market against large device manufacturers such as Olympus, Applied Medical, Medtronic, Stryker and Karl Storz. ConMed characterized AirSeal as a highly differentiated technology in laparoscopic and robotic surgery and expected the acquired business to contribute $55 million to $60 million of revenue in fiscal 2016, with roughly $15 million in annual net savings.

Unlike conventional insufflation and trocar systems, the AirSeal platform combines stable pneumoperitoneum, continuous smoke and plume evacuation, and valve-free abdominal access in a single integrated system usable in both laparoscopic and robotic procedures.

Technology

The AirSeal Access System uses a valve-free access design that replaces conventional trocar valves and standalone insufflators, maintaining stable pneumoperitoneum while continuously evacuating surgical smoke and plume created by electrocautery, laser and ultrasonic devices. The AnchorPort trocar is a 5mm device with a bladeless optical tip enabling visualized entry and an elastomeric cannula that conforms to abdominal wall thickness, widening internal instrument access angles. AirSeal received FDA 510(k) clearance in May 2015 for rectal insufflation with continuous smoke evacuation.

Go-to-market

Direct sales and field support teams selling to hospitals and surgical centers, supported by clinical leadership and surgeon collaboration; after the acquisition, products are distributed through ConMed's Advanced Surgical salesforce and distributor network.

Hospitals, health systems and surgical teams performing laparoscopic and robotic abdominal procedures, including academic medical centers and surgeons involved in clinical training and case studies.

Geography

Headquartered in Connecticut, with the company reported in Orange, Connecticut in 2011 and in Milford, Connecticut by 2015; commercialization efforts targeted both domestic and international markets, and post-acquisition distribution extends through ConMed's global customer base.

History

Founded in May 2006, SurgiQuest raised a $19 million financing round in July 2011 led by River Cities Capital Funds with participation from Fletcher Spaght Ventures, CMEA Ventures, California Technology Ventures, Aphelion Medical Fund and other existing investors, to support commercialization domestically and abroad. In April 2015 the company appointed Jaime Landman, M.D. as Chief Medical Director. The AirSeal device received FDA 510(k) clearance in May 2015 for insufflating the rectum and providing continuous smoke evacuation. In November 2015 SurgiQuest filed for a $75 million initial public offering; approximately a week later ConMed announced an agreement to acquire the company for $265 million. ConMed closed the acquisition in January 2016, funding it with a $175 million term loan and a $525 million credit revolver. Founder and CEO Kurt Azarbarzin was slated to join ConMed as chief technology officer of its advanced surgery business.