Endogenex, a clinical-stage medical technology company, has closed a $50 million Series C extension to support its ongoing clinical development and regulatory efforts, as detailed in its official announcement. The financing round was led by Arboretum Ventures, with participation from existing investors. The new capital builds on the company’s previous $88 million Series C raised in June 2024, bringing total Series C funding to $138 million.
The company plans to use the proceeds to complete its pivotal ReCET Clinical Study and advance its regulatory pathway toward approval from the U.S. Food and Drug Administration.
Endogenex is developing a minimally invasive, outpatient endoscopic procedure designed to treat type 2 diabetes by targeting the duodenum. The approach uses non-thermal pulsed electric fields to regenerate damaged tissue in the small intestine, aiming to restore metabolic signaling that regulates blood sugar, appetite, and digestion.
The company’s technology is based on growing evidence that inflammation in the duodenum may disrupt communication between the gut and other organs involved in metabolic control, potentially contributing to the progression of type 2 diabetes.
The ReCET Clinical Study is a multicenter, randomized, double-blinded, sham-controlled trial evaluating the safety and effectiveness of the Endogenex System. The study received Investigational Device Exemption approval in November 2023 and is being conducted at clinical sites in the United States and Australia.
Endogenex was founded in partnership with Mayo Clinic and is focused on developing therapies that address underlying causes of type 2 diabetes rather than only managing symptoms.
KEY QUOTES
“This financing puts us in a strong position to complete our pivotal study and take the ReCET System through FDA approval. Type 2 diabetes continues to take a heavy toll on patients, providers, and the healthcare system. Even with the best available therapies, including GLP-1 receptor agonists and SGLT2 inhibitors, the disease often continues to progress. We believe that is because an important part of the disease has gone untreated: the gut. By restoring the duodenum to a healthier state, we aim to help patients do more than manage their symptoms. We want to potentially alter their disease progression, and this funding moves us meaningfully closer to that goal.”
Stacey Pugh, CEO of Endogenex
“We are proud to lead this financing and to partner with the Endogenex team at this stage of its development. As a gastroenterologist, I recognize the scientific rationale of targeting the duodenum as a likely contributor to Type 2 Diabetes. The ReCET System represents a compelling and important new tool for a disease that affects hundreds of millions of people worldwide. We look forward to supporting Endogenex as it advances through its pivotal study.”
Dr. Tom Shehab, Managing Partner at Arboretum Ventures
