Cipher Surgical is based in the Washington area and is part funded by a local family office with deep medical device experience. The company is launching the OpClear, a novel, patented and FDA cleared single use device used to keep clear the scope lens during a laparoscopic (keyhole) surgery. It will replace the current practice of removing the scope for cleaning which is time consuming and potentially risky to patient outcomes. Customers are laparoscopic surgeons conducting over 20m laparoscopic operations across a wide range of surgical procedures.

In a $50bn industry where visual acuity is critical, there has been no solution to the problem of lens soiling. It is described by Olympus as the “holy grail of laparoscopy”.

Studies indicate that on average a scope is removed 13 times for cleaning and even then a surgeon may still spend over 30% of operative time with impaired vision.

Cipher's business model is to sell through specialist sales agents & distributors. Presales in the UK test market have commenced with 6 early adopter hospitals.

The company has raised over $12m for development since 2010 and now seeks $2m for launch with $1.3m already committed from existing shareholders and in partnership with a US family office with extensive interests in US medical devices.

This is a fertile area for M&A as large medical device companies tend to acquire new products rather than develop them. There have been 4 directly comparable exits between $250m-$350m at up to 10 x sales. Cipher is targeting sales of $25m in 3/4 years to justify this valuation.

There is no direct competition to the OpClear and Cipher will maintain its leadership through product development and patents, particularly in the field of robotics.

The management team is complete, fit for purpose and well incentivised with share options with a strong board covering device marketing, clinical and financial disciplines.