Business Editors/Health/Medical Writers
NEWTON, Mass.--(BUSINESS WIRE)--July 22, 2003
GI Dynamics, an early stage medical device company developing novel approaches to treat obesity, today announced it has secured $4.1 million in Series A financing. The round was co-led by Advanced Technology Ventures (ATV), Domain Associates and Polaris Ventures, with additional financing from Catalyst Health and Technology Partners and Seedling Enterprises. Proceeds from this financing will be used to complete product development and initiate clinical trials with patients.
Obesity is a large and growing market problem with high unmet needs for the effective use of advanced medical devices and drug therapies. The U.S. represents the largest market in the world, where more than 30 percent of the adult population - representing 80 million Americans - is clinically obese, which is classified as a body mass index (BMI) of 30 or more. Obesity leads to increased mortality rates due to associated problems of heart disease, high blood pressure, cancer and diabetes. More than 280,000 deaths are attributed to obesity in this country each year. Existing diet and exercise regimens, drug therapy, liposuction and behavior modification are limited in their efficacy. A surgical option known as gastric bypass is the only effective solution that adequately promotes prolonged weight loss. More than 80,000 gastric bypass surgeries will be performed in 2003. However, this surgery is difficult to perform, invasive, traumatic and expensive, with high operative risks and long recovery times.
GI Dynamics has developed novel devices that are delivered into the gastrointestinal tract using minimally invasive techniques. The devices affect weight loss in a manner similar to the mechanisms associated with the gastric bypass surgical procedure - but in a less invasive fashion that can result in substantially shorter recovery times, along with less risk and decreased medical costs.
"Obesity represents a growing area of medical need", said Michael Carusi, general partner, ATV. "This high unmet need, coupled with an experienced founding team and strong investor syndicate, make GI Dynamics a terrific investment opportunity. We look forward to helping to build a successful enterprise."
"We are proud to have the support of these prestigious venture groups," said Andy Levine, CEO of GI Dynamics. "This financing will allow us to accelerate product development in a high-growth area, and it will allow GI Dynamics to lead the way in the development of safe, simple and cost effective technologies to treat obesity."
