Massachusetts Startup Raises US$57 Mn for Endoscopic Procedure to Treat Diabetes

Published Date : Nov 20, 2015

Type 2 diabetes is a costly and chronic disease that has so far been managed with the help of drugs in combination with close monitoring of the patient’s diet and regular exercise. 

However, a few startups have turned to devices in order to address the management of this disease. 

Fractyl Labs on Thursday announced that is has raised US$ 57 million in a Series C round of funding. Investors in this round are existing players General Catalyst Partners, Domain Associates, Mithril Capital Management, and Bessemer Venture Partners, along with Deerfield Management Company, the latest addition to the group of investors. 

The Revita Duodenal Mucosal Resurfacing System has been developed by Fractyl. This is a one day endoscopic procedure in which a part of duodenum mucosa is ablated. This procedure has the ability to enhance the glucose control of diabetics who are finding it difficult to manage disease. 

Partner at Deerfield Avi Kometz said that the rising burden of Type 2 diabetes not just on individuals but also on the overall economy has been recognized. This field can be significantly developed by allowing a device based procedure to work together with other dietary and medical approaches. He added that Deerfield was excited to support Fractyl in its development of the innovative therapy. 

In the latter half of September, Fractyl revealed the results of a study of 39 patients whose levels of blood glucose were poorly managed and who took at least one oral medication for diabetes. The results revealed that those with a more ablated duodenum mucosa showed greater reduction of A1C levels in a follow-up check up after six months. This group saw that A1C levels had fallen from 8.5 per cent to 7.1 per cent in six months, in addition to a slight reduction in weight by just over 5 pounds.