Massachusetts based Fractyl Laboratories secured $55 million for a Series E round to finance a pivotal clinical trial of its potential non-drug, non-surgical treatment for Type 2 diabetes according to a statement released by the company.
The new acquired funds be put toward the Mass-based start up’s “Revita T2Di pivotal clinical trial of Revita DMR (duodenal mucosal resurfacing).”
The round of funding was led by Taiwania Capital Management Corporation with participation by some former investors which includes Bessemer Venture Partners, General Catalyst, Domain Associates, Mithril Capital Management, Emergent Medical Partners, True Ventures, and GV. Catalio Capital Management, CDIB Venture Capital Corp., and YJ Capital also patronized this round of funding.
“Type 2 diabetes and NAFLD/NASH are eroding our global health and are responsible for a large portion of global healthcare costs,” said Michael Huang, managing partner at Taiwania, who will join Fractyl’s board. “Fractyl has established through rigorous clinical studies that Revita, a breakthrough non-drug, non-surgical treatment, has the potential to significantly improve type 2 diabetes outcomes.”
“Fractyl’s founding mission was to find a better way to treat type 2 diabetes by addressing the root cause of disease that can reverse the disease process rather than manage its symptoms. We now have data from hundreds of patients with type 2 diabetes showing the durable benefits of a single Revita treatment,” said Harith Rajagopalan, M.D., Ph.D., co-founder and CEO of Fractyl. “We welcome our new investors and the continued support of our returning investors, who recognize that we are at a pivotal moment in fundamentally redefining the treatment paradigm for metabolic diseases, including type 2 diabetes and NAFLD/NASH. We look forward to initiating our pivotal U.S. clinical trial later this year.”