Barrx Medical: Making A Case For Ablation

Article preview from In-Vivo -October, 2010

Barrx Medical set out seven years ago to compile enough clinical trial data to prove not only that ablation is a safe and effective way of treating Barrett's esophagus, but also that is cheaper than endoscopic surveillance. Its patience is beginning to pay off.

Barrx Medical: Making A Case For Ablation

Article preview from In-Vivo -October, 2010

Barrx Medical set out seven years ago to compile enough clinical trial data to prove not only that ablation is a safe and effective way of treating Barrett's esophagus, but also that it is cheaper than endoscopic surveillance. Its patience is beginning to pay off.

By Tom Salemi

• Six million people in the world have Barrett's esophagus, and nearly all go untreated.

• Ten percent of people with the most serious cases – lower- and higher-grade dysplasia – are treated with surgery or now, radiofrequency ablation.

• But the five million people with the metaplastic form of the disease must wait until the disease progresses to warrant medical intervention.

• Barrx Medical hopes to tap into that huge market by advocating that those patients be treated as well, with its radiofrequency ablation.

Barrx Medical Inc. has done an effective job of navigating its HALO radiofrequency ablation device onto the commercial markets as a new treatment for Barrett's esophagus, a cellular change in the lining of the esophagus caused by chronic injury due to gastroesophageal reflux disease (GERD). Patients with Barrett's face a significantly higher risk for developing esophageal cancer. With predicates in place for both regulatory and reimbursement approval, Barrx moved quickly to establish its ablation technology as a viable treatment or complement to treat higher- and lower-grade dysplasia forms of Barrett's as well as some esophageal cancer.

With the low-hanging fruit in its basket, Barrx's success will largely depend on what the company does next. Treating higher- and lower-grade dysplasia is critical, as people with those diseases face a very real threat of developing esophageal cancer. But Barrx's biggest opportunity rests in addressing the largest market of Barrett's esophagus patients, the 5.5 million people worldwide who have tested positive for non-dysplasia Barrett's, the most benign form of the disease. ( See Exhibit 1.) The company projects the entire Barrett's market to be over $5 billion, with more than three-quarters of that coming from patients with non-dysplasia Barrett's.

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