Monday, February 9, 2009

GI Dynamics secures $15M investment

By Mass High Tech staff

Medical device firm GI Dynamics Inc. has raised $15 million in an additional Series C funding, according to published reports. Funding the investment were return backers Advanced Technology Ventures, Cutlass Capital, Domain Associates, Johnson & Johnson Development Corp., Polaris Venture Partners and Seedling Enterprises, website PE Hub reports.

The financing follows a first tranche of $30 million in 2006. In total, the company has secured more than $60 million in venture capital financing since it was founded in 2003.

GI Dynamics develops novel approaches to treat obesity and diabetes. It has created the non-invasive device, EndoBarrier Gastrointestinal Liner. The removable device creates a barrier between ingested food and the intestinal wall, moderating food through the digestive system. It can be implanted and removed orally.

In September, the company reported study results showing that subjects using the device lost triple the weight than dieting patients without the device. At 12 weeks, patients in the device group lost 30.2 pounds versus 9.7 pounds for patients in the control group. The study also showed that the device lowered blood glucose levels and reduced the need for diabetic medication in some patients.