Xenocor – the creator of the FDA-cleared Saberscope, the world’s first true HD, fog-free, articulating, single-use laparoscope – announced a $10 million Series A funding led by GenHenn Venture Fund I with participation from Baranco Investments, Barvest Ventures, and Patel Family Investments. The company will use the funding for the 2023 launch of the Saberscope and continue executing its robust innovation roadmap. And to help accelerate the company’s growth, Michael J. Hennessy Jr., GenHenn Capital will join the Xenocor board of directors.
With an addressable market of $4.5 billion in the U.S., Xenocor has created the best technology on a scalable platform, hired the right veteran medical device leadership, and is following the right strategic course to capture a meaningful share of this dynamic market.
The current reusable laparoscope model has been in place for 35 years and is the only option for minimally invasive surgeons. And on a typical day in a hospital – before the surgeon enters the room – the staff has already brought in the equipment, warmed the scopes in a saline bath, and put on a special light cord setting to avoid starting an OR fire.
After the surgeon enters, they have to white balance the scope, and 62.5% of the time the equipment is still not ready, and the surgeon needs to spend time troubleshooting. And during the surgery, the scope frequently fogs, it is difficult to see through smoke and steam and almost impossible to see around critical anatomy. After the procedure is complete, the devices are wiped down and transported to sterile processing (usually not just around the corner from the OR). At sterile processing, staff are in incredibly short supply nationwide, and have to thoroughly clean the scopes and properly route broken equipment through a complex repair and loaner process. The scopes that are deemed to be in working order must then be transported to the right place at the right time – which is no easy feat.
The Saberscope addresses every unmet need described above. And when the staff gets into the room, they open the Saberscope, plug it in, and go. The Saberscope eliminates fog, sees better through smoke and steam, and can articulate 90 degrees in any direction with a simple wrist movement, allowing the surgeon full visibility to the anatomy they need at any point during the procedure. Lastly, the scope is placed in a Xenocor recycle bin and a new one can be easily pulled off the shelf. It just makes sense.
Due to the significant positive feedback received from across the laparoscopic community, Xenocor is investing in sales talent to support the long list of facilities where surgeon champions are ushering the Saberscope through the procurement process. And a number of large academic systems have already issued purchase orders.
Plus Xenocor has brought in additional manufacturing leadership to drive meaningful scale. And given the significant demand, new healthcare systems will be brought on in sync with the manufacturing plan so no customer will have to experience disruptions in service.
KEY QUOTES:
“Xenocor is laser focused on facilitating the evolution of the 35-year-old laparoscopic visualization model to something that clearly better serves care givers and patients during minimally invasive surgery. Our FDA cleared Saberscope improves visualization, dramatically diminishes workflow complexity, increases safety and reduces waste.”
– Charles DeCoster IV, CEO of Xenocor
“We are beyond thrilled to be leading the Xenocor Series A. Based on the deep insights I have gathered during my long career in healthcare leadership, I believe Xenocor will have a transformational impact on minimally invasive surgery. Their unique technology coupled with their veteran leadership will change the future of laparoscopy forever.”
– Michael J. Hennessy Jr., GenHenn managing partner
