| |
EnteroMedics Closes $16.9
Million Series B Financing
ST. PAUL, MN – NOVEMBER 30, 2004
EnteroMedics Inc., a leading developer of
medical devices for the treatment of obesity and gastrointestinal
disorders, today announced the closing of a $16.9 million Series
B preferred stock financing. Proceeds from the financing will
be used to advance the clinical development of the company's
lead product candidate for the treatment of obesity.
The financing was led by Bay City Capital with other participating investors
including MPM Capital, Aberdare Ventures and Charter Life Sciences. With the
closing of the financing, Carl Goldfischer, M.D., of Bay City Capital, Terry
Spraker, Ph.D., of Aberdare Ventures and Donald Harrison, M.D., of Charter
Life Sciences will join EnteroMedics' board of directors. Current directors,
Luke Evnin, Ph.D., of MPM Capital and Mark Knudson, Ph.D., president and CEO
of EnteroMedics, will remain on the board.
"EnteroMedics is pleased to have achieved
this important financial milestone with this consortium of
experienced life science investors," said Mark Knudson. "This
funding not only provides capital for the continued development
of our lead obesity product, but also demonstrates critical
validation of our fundamental technology platform."
EnteroMedics' lead product candidate is
an implantable system for the treatment of obesity. Based on
the company's Vagal Smart Modulation™ (VSM™) therapeutic
platform, the product is designed to down-regulate (controllably
block) the activity of the vagus nerve. The superior versatility
of the VSM platform would make it the first technology to simultaneously
control multiple major biological functions related to obesity,
including food intake, hunger perception and digestion.
By acting on these key functions, the VSM
technology will allow patients to avoid major surgery while
providing significant advantages as compared to current drug
or device treatments that only address one or two such causes
of obesity. Furthermore, VSM treatment is reversible and can
be adjusted and programmed to meet an individual patient's
treatment needs.
"The innovative nature of the VSM technology,
as well as its great potential to treat large market conditions
such as obesity, makes EnteroMedics a very attractive investment
opportunity," stated Carl Goldfischer. "EnteroMedics'
management team has a strong history of successful product
development and we are confident in the team's ability to leverage
the VSM platform into high-value products that offer significant
benefits to a wide range of patients."
About EnteroMedics
EnteroMedics Inc. is developing novel medical devices
to treat obesity and gastrointestinal disorders through modulation
(controllable, reversible modification) of vagus nerve activity.
EnteroMedics' products are based on the company's proprietary
Vagal Smart Modulation™ (VSM™) system. This technology,
which is designed to control vagus nerve signals to key organs,
including the stomach and pancreas, offers targeted therapeutic
outcomes not currently available with existing technologies.
The company's lead product is currently in clinical development
for the treatment of obesity.
|
|
