The Insides Company Investment offer preview

The Insides™ Company develops life-changing medical devices for people who are recovering from severe intestinal conditions including inflammatory bowel disease, colorectal cancer and intestinal fistulas.

Overview

Founded in 2017, The Insides Company is a leading provider of therapeutic chyme reinfusion solutions for patients recovering from colorectal surgery and complex intestinal diseases.

Its flagship product, the Insides™ System, helps to resume oral feeding, weight gain, accelerate recovery from home, reduce risk of infection and line sepsis and improve electrolyte and liver function. It has been granted Breakthrough Device Designation by the US FDA and is now commercially available in the United Kingdom, Europe and New Zealand.

Investment Highlights

  • Projected annual sales of $50m by 2026
  • Addressable market of ~$2B per annum
  • 3 patent-pending devices (1 flagship, 2 in clinical trials)
  • Designated Breakthrough Device by the US FDA
  • Regulatory approval in 29 countries
  • Successfully being used in 24 specialist hospitals to treat patients, with the first sales and reimbursement in New Zealand's home market and Europe achieved

Problem

Type II intestinal failure is one of the most catastrophic of complications which affects 9,200 people annually.Caused by surgical complications from bowel cancer, inflammatory bowel disease and trauma surgery, Type II intestinal failure requires long-term hospitalisation (8 months) and synthetic venous feeding. Cost of treatment is expensive, running around $230,000 per patient, and carries a 40% risk of line infection from venous feed, which is associated with mortality risk.

Solution

The Insides™ System is an electrical medical device with monthly consumables. It re-establishes the continuity of the full intestine, performing a process called chyme reinfusion, which helps to prevent wasting away of the gut by continuing to use all the functional gastrointestinal tract to absorb nutrients from the chyme. This process enables patients to reestablish oral feeding and wean off parenteral nutrition in as little as 3 days, resulting in significant health economic benefits and improvements in quality of life.

The Insides™ System was designated as a Breakthrough Device by the US FDA, and has had its efficacy published in the British Journal of Surgery. It has also won awards in innovation and design excellence.

To date, the device has received regulatory approval in 29 countries and is patent pending in national phase in 10 territories.

Clinical Benefits

  • Resume oral feeding
  • Weight gain
  • Accelerated recovery from home
  • Reduced risk of infection and line sepsis
  • Improved electrolyte and liver function

Estimated Economic Benefits

  • $68,000 in hospitalisation cost savings* including cost of our device
  • 70% reduction in hospital time*

*For Enterocutaneous Fistulas in the UK

Market

Target customers are colorectal surgeons and hospitals specialising in intestinal failure. The Insides System is estimated to have a market size of $700M annually over all of its clinical indications, including type II intestinal failure. The total market opportunity of the current suite of product launched and in development is estimated to be $2B annually.

Opportunity

The Insides Company is targeting reimbursement at 100 specialist hospitals by 2026. Currently, the product is being successfully used in 24 specialist hospitals. Sales are performed by sales teams and distributors, with the company having secured distributors in New Zealand and Australia.

The company is looking to expand its product range and use across a range of indications, with two pipeline products in feasibility trials. The Insides Company have projected annual sales to reach $50m by 2026.

Capital Raise & Next steps

The capital raised will be used to fund a 2-year sprint to achieve:

  1. Grow UK, EU and ANZ sales and distributor network
  2. Reimbursement in the UK, FR, DE, and Medicare coverage in the US
  3. Obtain US regulatory approval for US market entry

The company has completed a first close of the Series A capital raise, raising a total of $4.5m, led by Icehouse Ventures, with further investment from K1W1, NZGCP and UniServices. The Insides Company has appetite to raise up to $6m, with the round closing on 30 September if not fully subscribed prior to this date. 

The minimum investment for this capital raise is $20k. If you wish to receive more information about the capital raise for The Insides Company, please leave your details and an indicative investment amount below. We will be in touch with all interested investors in due course. Note that this offer is open to wholesale investors only.

1 42 countries including OECD and non-OECD European countries.


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About Snowball Effect

Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public. Snowball Effect was founded in 2012 and launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the New Zealand Financial Markets Authority (FMA). Over NZ$106 million has been raised on the platform.