EndoStim raises $6M in Series B equity financing round

Jul 19 2010

EndoStim, Inc., a medical device company developing minimally-invasive interventional therapies to treat gastrointestinal and urological neuro-muscular disorders, today announced it has raised $6 million in Series B equity financing. Santé Ventures, a life science venture capital firm, led the round and was joined by the Prolog Ventures, Vectis Healthcare & Life Sciences Fund II and returning angel investors.

“With this round of funding we can continue to build on the momentum we've already achieved.”

EndoStim is developing a new treatment for sphincter related disorders such as Gastroesophageal Reflux Disease (GERD) and Urinary Urge Incontinence by restoring physiological function through neurostimulation. "GERD is a difficult to treat medical condition affecting hundreds of millions of patients worldwide and approximately 30 million patients in the US alone," said Virender K. Sharma, MD, EndoStim Founder and Chief Medical Officer. Drugs known as Proton Pump Inhibitors (PPIs) are the standard of care for GERD treatment; however they do not address the root-cause of GERD. A significant percentage of patients suffer from severe or refractory GERD and continue to show symptoms despite maximal drug therapy. In addition, there have been serious concerns and FDA warnings related to safety of PPIs. In severe or refractory cases, patients may opt for surgical anti-reflux procedures that are costly and invasive, and the patient may still have to continue their drug therapy. "With the procedure we have developed, we believe we can offer a lower cost, interventional solution for treating severe or refractory GERD and reach the many patients currently unresponsive to or dissatisfied with their medical therapy," said Dr. Sharma.

The financing will be used to continue clinical trials and pursue CE Mark and FDA approval. "We are positioned to establish a new "gold standard" treatment for severe GERD and potentially urinary incontinence," said Bevil Hogg, EndoStim President and CEO. "With this round of funding we can continue to build on the momentum we've already achieved."

With the announcement of the new financing, Santé Ventures Managing Director, Doug French, Voyent Partners member, Fred Goad, and James S. McDonnell Foundation Director, Jeff McDonnell, will join EndoStim's board of directors. "We were first impressed by EndoStim's management team," said Doug French. "And second by the market opportunity to more effectively address these broadly prevalent diseases less invasively while reducing the cost of treatment."

SOURCE EndoStim, Inc.