WALTHAM, MA. – Fractyl Laboratories, Inc. announced the extension of their $40 million series C investment with $17 million of additional funding. Total investment in Fractyl’s round C financing is now $57 million. New investor Deerfield Management Company, L.P. joined existing investors Mithril, General Catalyst, Bessemer Venture Partners and Domain Associates.
“We appreciate the strong support of our new and prior investors in our effort to improve the health of patients with Type 2 Diabetes and related metabolic diseases. We will use these funds to accelerate our clinical development as we expedite our path to market,” said Dr. Harith Rajagopalan, MD, Co-Founder and CEO of Fractyl. “To this end, we have already treated 28 patients in our first international multicenter clinical trial and remain on track to begin randomized studies next year.”
Dr. Rajagopalan started the company while serving as an Entrepreneur-in-Residence at General Catalyst Partners. Prior to founding Fractyl, he was an academic cardiologist and physician-scientist. He received his B.S. in Chemistry from Stanford University and went on to obtain M.D. and Ph.D. degrees from Johns Hopkins School of Medicine. At Johns Hopkins, Dr. Rajagopalan did groundbreaking and award-winning research on intestinal cancers that was published in top medical journals, including Nature and Science. After medical school, he trained in internal medicine and clinical cardiology at Brigham and Women’s Hospital and completed a research fellowship at Harvard Medical School.
In September Fractyl announced results from a 39-patient, single-site, proof-of-concept study demonstrating that a same-day procedure using the Revita Duodenal Mucosal Resurfacing (DMR) System produces significant, beneficial changes in blood sugar in patients with poorly controlled type 2 diabetes. The minimally invasive approach is based on bariatric surgery procedures that have been shown in many patients to be more effective than medication. A multicenter clinical trial of Revita DMR (“Revita-1” trial) is currently underway in Europe and South America.
“The growing burden of Type 2 Diabetes on individuals and the economy is well recognized. The potential for a device-based procedure to work in conjunction with other medical and dietary approaches is a significant development in this field. We are excited to support Fractyl in developing this innovative therapy,” said Avi Kometz, MD, partner at Deerfield.
“As an early investor in Fractyl, we are delighted by their continuous progress toward a valuable, patient-friendly intervention for type 2 diabetes,” said Ajay Royan, founder and managing general partner of Mithril Capital Management.
Fractyl Laboratories, a private company based in Waltham, MA, was founded with the mission to address the underlying biology of metabolic diseases including type 2 diabetes. Fractyl has developed duodenal mucosal resurfacing (the Revita DMR system), a same-day procedure with the potential to significantly improve metabolic health. Fractyl is currently engaged in clinical trials designed to demonstrate that the Revita DMR procedure can meaningfully improve glucose control and potentially reduce the need for additional medications in type 2 diabetes. In 2015 FierceMedicalDevices named Fractyl one of the 15 most promising private medical technology companies.