Elcelyx Therapeutics has raised $20 million in Series C financing. The company is a developer of products including an over-the-counter weight loss product and a treatment for Type 2 diabetes. Elcelyx has raised a total of $43 million since it was founded in 2010. GSM Fund led the latest round, which also included Morgenthaler Ventures, Kleiner Perkins Caufield & Byers, and Technology Partners.
Elcelyx Therapeutics announced today
the closing of a $20 million Series C financing to fund development of product
candidates NewMet for Type 2 diabetes and Lovidia, an over-the-counter weight
loss product. The financing was led by GSM Fund LLC, a fund dedicated to this
single investment and managed by Rick Barry, who has been elected to the
Elcelyx Board of Directors. All previous investors also participated in the
round, including Morgenthaler Ventures, Kleiner Perkins Caufield & Byers, and
Elcelyx has raised a total of $43 million since it was founded in 2010 and
advanced its two first-in-class Gut Sensory Modulators (GSM) for the treatment
of diabetes and weight loss into late-stage clinical development.
Pharmaceutical product candidate NewMet is a delayed-release formulation of
generic metformin, the #1 diabetes product in the world. By targeting this GSM
to the lower gut and avoiding systemic absorption, NewMet is designed to have
low bioavailability with preserved efficacy. In a recently completed Phase 2a
clinical study in patients with Type 2 diabetes, NewMet met the primary endpoint
of lowered glucose and demonstrated improved tolerability compared to generic
Lovidia, a proprietary mix of Generally Recognized As Safe (GRAS)-designated
dietary ingredients, is targeted to the consumer market. Lovidia can be used for
multiple applications including as an over-the-counter product for weight loss
and metabolic health, and as a food additive for satiety and lower glycemic
index. An early version of Lovidia demonstrated statistically significant
progressive and sustained weight loss without diet or exercise modification.
Lovidia increases the body’s production of natural satiety and gluco-regulatory
gut hormones twofold; with the same number of calories, subjects in clinical
trials had twice the satiety signal.
“Elcelyx is that rare winning trifecta in healthcare: Low-risk products that
address large populations, experienced leadership and blue-chip investors. It is
a pleasure to support and advise an organization that can make a profound impact
on the lives of people struggling to manage their diabetes and weight,” said
Elcelyx Director Rick Barry.
Mr. Barry joins current Elcelyx directors Ralph “Chris” Christoffersen, Ph.D.
(chairman), Brook Byers, Jim Glasheen, Ph.D., Ginger L. Graham and Alain
Baron, M.D. Barry’s career in the financial industry included posts at Merrill
Lynch, Robertson Stephens Investment Management and other leading financial
services companies. In 1999 he founded Eastbourne Capital Management, LLC and
served as its managing member and portfolio manager until it was closed and he
retired in 2010.
“Elcelyx is accumulating impressive clinical data for NewMet and Lovidia
demonstrating the product candidates’ ability to meaningfully improve glucose
regulation and reduce weight with minimal side effects, respectively,” said
Alain Baron, M.D., President and Chief Executive Officer of Elcelyx
Therapeutics. “The Series C financing will enable us to build the value of both
products and reach important data read-outs that will be attractive to potential
About Elcelyx Therapeutics
Elcelyx Therapeutics is developing safe products for weight management and
obesity-related metabolic disorders based on the science of nutrient sensing.
The Elcelyx first-in-class product candidates, Lovidia and NewMet, are Gut
Sensory Modulators backed by rigorous science and clinical data demonstrating
their ability to rapidly reduce weight and improve glucose metabolism without
systemic side effects, respectively. The products represent reduced-risk,
near-term blockbuster opportunities in weight management and Type 2 diabetes
with longer-term opportunities in obesity and prediabetes. Elcelyx is based in
San Diego, CA. For more information, visit www.Elcelyx.com.
SOURCE Elcelyx Therapeutics