Fractyl Labs today announced the closing of a $100 million Series F financing round in addition to a name change to Fractyl Health.
Lexington, Mass.-based Fractyl Health received contributions to the round from new investors Maverick Capital, M28 Capital and Population Health Partners, while other new and existing investors participated, too.
According to a news release, M28 Capital founder Marc Elia and Population Health Partners executive chairman and founder Dr. Clive Meanwell joined Fractyl’s board of directors as a result.
“We’re immensely proud of the leadership role Fractyl has established in creating innovative treatments to address the root cause of metabolic disease, with an initial focus on type 2 diabetes. The closing of this Series F financing, the significant experience of our new board members, and our company’s renaming as Fractyl Health reflect the momentum we have built and the vast potential that lies ahead for our approach,” Fractyl co-founder & CEO Dr. Harith Rajagopalan said in the release. “By controlling the body’s central metabolic control organ, the duodenum, we believe we’ve discovered a novel way to treat metabolic disease at its source. This financing will enable the expansion and acceleration of our clinical development efforts with the goal of reducing insulin dependence for patients with type 2 diabetes on a global scale.”
Fractyl in April garnered FDA breakthrough device designation for its Revita DMR procedure designed to resurface the upper intestine lining (duodenal mucosa) in metabolic disease for patients with insulin-treated type 2 diabetes. Through the procedure, the company aims to minimize or eliminate the need for type 2 diabetes patients to receive insulin treatment.
The company has begun enrolling patients in the Revita-T2Di study that will evaluate the procedure. Fractyl also recently confirmed that CMS approved coverage of routine costs for Medicare patients in the Revita-T2Di trial, with all eligible participants set to receive study-related health assessments at no cost. The decision allows for reimbursement coverage to clinical research centers for certain trial-related expenses.
“Fractyl is developing technology that stands apart from the rest of the landscape in metabolic therapeutic innovation. Patients with diabetes — and our broader society — desperately need a therapy that offers disease modification as well as relief from the clinical, practical, and financial burden inherent in the current metabolic standard of care,” Elia said. “Eliminating the need for insulin therapy from type 2 diabetes would be a landmark achievement for patients and society. I look forward to helping Fractyl as it works toward its mission.”