Fractyl Laboratories said today that it closed a Series C round worth $57 million with a final, $17 million tranche joined by new backer Deerfield Management, as it readies its Retiva device for a Phase II trial.
Waltham, Mass.-based Fractyl calls the Retiva a “duodenal mucosal resurfacing” device; it’s designed to separate the mucosa and sub-mucosa in the duodenum before ablating the mucosa to help regulate insuling production in Type II diabetics. A 39-patient proof-of-concept study showed results that were comparable to bariatric surgery, according to the company. Fractyl began enrollment in the Revita-1 Phase II trial in July.
The Series C round included Mithril, General Catalyst, Bessemer Venture Partners and Domain Associates, Fractyl said.
“We appreciate the strong support of our new and prior investors in our effort to improve the health of patients with Type II diabetes and related metabolic diseases. We will use these funds to accelerate our clinical development as we expedite our path to market. 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,” co-founder & CEO Dr. Harith Rajagopalan said in prepared remarks.
“The growing burden of Type II 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,” added Deerfield partner Dr. Avi Kometz.