EndoStim Raises $6 Million in Series B Funding
ST. LOUIS, Missouri—July 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.
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.”
About EndoStim, Inc.
EndoStim, Inc. is a St. Louis-based medical device company developing novel microstimulator technology to treat a number of widely prevalent sphincter-related disorders. For more information, call Michael Lightfoot, Director of Operations at 314-615-6345.
About Santé Ventures
Santé Ventures is a life sciences venture capital firm that invests exclusively in early-stage companies developing innovative new medical technologies or healthcare delivery models. The firm was founded in 2006 and has $132 million in capital under management in its debut fund. For more information, visit www.santeventures.com.
About Prolog Ventures
Prolog is a venture capital firm specializing in life science investing. Since its launch in 2001, Prolog has financed more than 20 companies, most of them early-stage. The firm is managed by a team of professionals with extensive experience as both investors and entrepreneurs. Prolog invests in traditional healthcare fields as well as emerging areas, such as wellness, plant science, and green technology. To learn more about Prolog, please visit www.prologventures.com.
About Vectis Healthcare and Life Sciences Fund II
Vectis Healthcare and Life Sciences Fund II is a Saint Louis-based fund investing in venture capital and private equity funds and direct co-investments. All funds and direct co-investments have a focus on the plant and life sciences, agricultural technology, and healthcare industries. Stifel Nicolaus and Brooke Private Equity Associates are co-managers of Vectis II. For further information on Vectis II, please contact J. Joseph Schlafly of Stifel Nicolaus. Please visit www.stifel.com to learn more about Stifel Nicolaus and www.brookepea.com to learn more about Brooke Private Equity Associates.