Endogenex announced that it closed an oversubscribed Series C financing round with proceeds totaling $88 million.
New investors Hatteras Venture Partners, Lumira Ventures and Orlando Health Ventures joined an undisclosed strategic lead investor. Intuitive Ventures, Longitude Capital, Mayo Clinic and Santé Ventures also participated in the Series C.
Minneapolis-based Endogenex plans to use proceeds to complete its ReCET clinical study, which holds FDA investigational device exemption (IDE). The trial evaluates the company’s novel ReCET procedure.
ReCET a novel, endoscopic, outpatient procedure, targets the underlying cellular abnormalities in the duodenum. These abnormalities contribute to the development and progression of type 2 diabetes. It aims to initiate the body’s natural regenerative process by applying highly controlled, non-thermal pulsed electric fields to the mucosa and sub-mucosa duodenal tissue.
This approach could restore proper cellular signaling from the duodenum and improve metabolic function. That could include better control of blood glucose levels.
Endogenex, founded in partnerhsip with Mayo Clinic, plans to enroll up to 350 patients in ReCET in the U.S. and Australia.
Stacey Pugh, a former Medtronic executive, joined Endogenex as CEO in March 2023. She called the funding “a significant step forward” in the company’s mission to transform diabetes care.
“This funding will enable us to complete our pivotal clinical study, bringing us closer to offering a groundbreaking solution for type 2 diabetes patients,” Pugh said in a news release. “The therapeutic landscape in diabetes continues to evolve, especially around the earlier use of SGLT2i and GLP-1RA. However, there remains a considerable unmet need to address the underlying pathophysiology and progression of the disease.”
