Fractyl Health is proving it has the midas touch when it comes to fund raising. The Lexington, MA-based company said it closed on its US$100 million series F round. The financing comes almost a year after Fractyl raised US$55 million in a series E round.
The company is also changing from Fractyl Laboratories to Fractyl Health to better reflect its mission.
Fractyl is developing the Revita DMR, a therapy poised to reduce insulin dependence in type 2 diabetes patients. Revita uses thermal ablation to ablate a portion of the duodenum mucosa, which executives believe can improve glucose control in patients struggling to manage the disease.
The company won approval for an IDE to launch a pivotal trial of the Revita DMR and won CE mark for the technology in 2016. In early March, Fractyl enrolled the first patient in the pivotal study in March.
Proceeds from the financing will support initiation of multiple late-stage clinical studies to assess the potential for Revita DMR to treat and halt the progression of metabolic disease.
The financing was led by new investors Maverick Capital, M28 Capital, and Population Health Partners, with participation by other new and existing investors. As part of this financing, founder of M28 Capital, Marc Elia and Clive Meanwell, executive chairman and founder of Population Health Partners, Dr. Clive Meanwell, have joined Fractyl’s board.
“The closing of this Series F financing, the significant experience of our new board members and our company’s renaming as Fractyl Health reflect the momentum we have built and the vast potential that lies ahead for our approach,” said co-founder and CEO of Fractyl, Dr. Harith Rajagopalan. “By controlling the body’s central metabolic control organ, the duodenum, we believe we’ve discovered a novel way to treat metabolic disease at its source. This financing will enable the expansion and acceleration of our clinical development efforts with the goal of reducing insulin dependence for patients with type 2 diabetes on a global scale.”
