Five months after spiking its plans for an initial public offering, EndoStim said today that it raised a $25 million Series D round for the neurostimulation device it’s developing to treat gastroesophageal reflux disease.
Saint Louis- and Nijmegen, Holland-based EndoStim said Endeavour Vision led the round, joined by existing backer Santé Ventures and new investors Wellington Partners and Gimv.
Endostim said it plans to use the proceeds to expand its sales footprint in Europe and to fund a randomized, sham-controlled U.S. trial.
The company describes its system in form and function to a pacemaker, with the device delivering low-level electrical stimulation to the lower esophageal sphincter, a muscle at the junction of the esophagus and stomach. The company touts the neurostimulation system as minimally-invasive, reversible and preserving of the anatomy of the esophagus and stomach.
EndoStim won CE Mark approval in 2012 to market the system in Europe. The FDA has approved an investigational device exemption that allows EndoStim to conduct a clinical trial in the U.S. The company, which had tabled the planned $35 million IPO in October 2014, officially pulled the plug in December 2015. Co-founder & CEO Bevil Hogg took Stereotaxis (NSDQ:STXS) public in a 2004 IPO that raised $44 million.
“Hundreds of millions of patients worldwide suffer from GERD, and many are not optimally treated with long-term proton pump inhibitor medication,” chairman Doug French, who’s also a managing director at Santé Ventures, said in prepared remarks. “We believe EndoStim is perfectly positioned to address the therapy gap that exists for patients with severe reflux, which is why we are very excited to welcome such an experienced group of new investors to the EndoStim team.”
“Endeavour Vision is proud to partner with EndoStim, which has created a truly revolutionary, minimally-invasive therapy that provides long-term control of esophageal acid exposure, while avoiding the risk of side effects that is common with traditional anti-reflux surgery,” added Endeavour Vision’s Alexander Schmitz, who joined the EndoStim board as part of the round. “We are confident that EndoStim will ultimately become a standard of care in GERD treatment in the U.S. and worldwide.”