Medical device startup Abilitech Medical Inc. announced Tuesday that its first product, the Abilitech Assist, is now commercially available and listed with the FDA. The St. Paul-based firm will raise $20 million to help it commercialize the Assist and to develop new products, CEO Angie Conley said.
"The four years of hard work are culminating in a very exciting time," Conley said of the product's development. "Hopefully we get to see some big smiles in our patients."
The Abilitech Assist helps restore arm movement in people who have neuromuscular weakness, such as those who have multiple sclerosis or a spinal cord injury. Future products include a pediatric device, a hand-grip device and a device for people recovering from strokes. The stroke device is expected to hit the market in late 2023.
Related: Abilitech was named an "Inno On Fire Blazer" winner for 2020.
Abilitech has eight employees and plans to hire more, including sales reps to help market the Assist. To hire, it's looking to raise a $20 million Series B. Abilitech has previously raised $12.3 million from investors including Fort Worth, Texas-based Bios Partners, San Francisco-based DEFTA Partners and Minneapolis-based Sofia Fund. Bios and DEFTA have already signed on for the Series B, Conley said.
Abilitech is conducting clinical trials with the University of Minnesota and at Gillette Children's Specialty Healthcare. It expects it will sell some devices from those trials and has inventory to sell to participants; others interested in Assist can email Abilitech and take a free telehealth screening to see if they qualify for the device.
The $20 million will also help Abilitech break even, Conley said. She expects the startup to have positive income in 2024.
"You need a good plan to achieve your goals, and we've got it," she said. Many of Abilitech's employees, including Conley, have significant experience working at Medtronic.
In 2019, Abilitech was named the winner of the Minnesota Cup, Minnesota's largest startup competition.
