January 7, 2010
Boston Business Journal
GI Dynamics raises $15M, gets Medtronic backing
Medical device maker GI Dynamics Inc. has landed $15 million in venture capital from an unidentified investor, according to a regulatory filing.
However, on Thursday the Lexington, Mass.-based company also confirmed it had raised money from Minnesota-based device maker Medtronic Inc. to advance its Dynamics’ EndoBarrier Gastrointestinal Liner for the treatment of Type 2 diabetes and obesity. GI Dynamics CEO Stuart Randle would not confirm whether Medtronic was the investor involved in the $15 million venture round, citing a desire not to discuss financing details.
GI Dynamics closed another $15 million venture round in February 2009. The deal was led by a handful of return backers, including Waltham, Mass.-based Polaris Venture Partners and Advanced Technology Ventures. The company has secured more than $75 million in venture capital since its founding in 2003.
“There will be expansion within the sales and marketing areas for sure — people both here as well as in Europe. We will also look at some modest expansion in our manufacturing area,” Randle said.
According to company officials, the EndoBarrier, designed to limit food intake, has already won regulatory approval in Europe to treat patients with Type 2 diabetes and obesity. Randle said that the company should begin selling the EndoBarrier in Europe sometime in the first half of this year. The sheath, which is applied through the mouth into the small intestines, will be moved into advanced clinical trials in the U.S. following the new funding.
“We’ve got plans for additional clinical trials in both the U.S. and Europe, and we are working in the U.S. with the (Food and Drug Administration) on those trial designs,” Randle said.