A Medical Device Daily
GI Dynamics (Lexington, Massachusetts) said it has closed an additional $15 million in Series C financing. With this additional funding, GI has closed a total of $45 million in Series C financing, bringing the total raised by the company since its inception to $61 million.
GI said it would use proceeds from this financing to advance the clinical development of its EndoBarrier gastrointestinal liner and EndoBarrier platform of devices for the treatment of metabolic disorders, including Type 2 diabetes and obesity. To date, the EndoBarrier gastrointestinal liner has been studied in more than 175 patients demonstrating promising efficacy and safety data in both obese subjects and patients with Type 2 diabetes, GI said.
Participants in the round included all of GI Dynamics' current institutional investors: Advanced Technology Ventures; Catalyst Health Ventures, Cutlass Capital; Domain Associates; Johnson & Johnson Development Corporation; and Polaris Venture Partners.
"Attracting additional capital from leading investors and pharmaceutical organizations in this market is a testament to the progress we have made over the last several years and the significant commercial potential of our EndoBarrier gastrointestinal liner to treat metabolic disorders," said CEO Stuart Randle."This funding further strengthens our ability to aggressively advance EndoBarrier into the next stage of clinical trials for the treatment of Type 2 diabetes and obesity, while continuing to develop additional products for the treatment of metabolic disorders based on the EndoBarrier intellectual property."
GI says its EndoBarrier gastrointestinal liner is a noninvasive, removable device, which is considered investigational and not commercially available outside of Europe.
According to the company, the EndoBarrier creates a physical barrier between ingested food and the intestinal wall, which physicians believe, may change the metabolic pathway by controlling how food moves through the digestive system. This mechanical bypass of the small intestine is thought to mimic the effects of gastric bypass surgery on a patient's metabolism, potentially resulting in weight loss and remission of Type 2 diabetes, the company said.
The EndoBarrier can be implanted and removed endoscopically via the mouth with relative ease and without the need for surgical intervention or alteration of the patient's anatomy, GI said.