Phagenesis – a pioneering UK company that has developed a revolutionary neurostimulation system to treat swallowing dysfunction – announced it has closed a $42 million Series D financing all equity investment round. And investment syndicate was led by EQT Life Sciences, and co-led by Sectoral, with new investors British Patient Capital, Northern Gritstone and Aphelion/Cardeation Capital also joining the round.
This funding round reflected their recognition of the transformative potential of Phagenesis’ cutting-edge therapy, Phagenyx.
The Phagenyx neurostimulation system targets and restores the neurological components of swallowing coordination and control that are impacted by brain injury (including stroke) or because of prolonged mechanical ventilation. Patients with swallowing dysfunction (dysphagia) are unable to safely or effectively eat, drink, or manage their own saliva. And dysphagia can often lead to life threatening complications such as pneumonia and is also associated with substantially higher healthcare costs.
With the recent approval of Phagenyx by the FDA in the United States, the investment is primarily intended to support commercialization in the United States and deepen penetration in Europe. It will also support clinical trials, regulatory activities, as well as research and development of pipeline products.
The randomized controlled trials have demonstrated clinically significant improvements, which support faster recovery of patients and reduced length of hospital stay.
In connection with the funding round, Drew Burdon, Michael Sjöström and Mark Wyatt will join the Phagenesis’ Board of Directors.
KEY QUOTES:
“This investment from a highly experienced international investor syndicate will accelerate access to and adoption of our therapy. We will invest in exceptional talent to scale up our customer outreach and to support passionate clinicians who want to bring our therapy to those who need it. Our novel and proven therapy can help the millions of patients every year who suffer from swallowing disorders.”
- Reinhard Krickl, CEO of Phagenesis
“Dysphagia is a severe medical condition that affects countless patients in hospital. It can increase hospital length of stay, the risk of complications, and lengthens recovery time. The Phagenyx System demonstrates significant reductions in hospital length of stay, with a corresponding and substantial reduction in healthcare costs, as evidenced by the Company’s strong portfolio of high-quality clinical studies. This is strongly aligned with EQT’s Health Economics strategy of transforming cutting-edge scientific innovation into impactful and cost-effective healthcare solutions. We’re excited to support the next phase of Phagenesis’ journey.”
- Drew Burdon, Partner at EQT Life Sciences
“Dysphagia associated complications are known to substantially increase mortality, but there is still a lack of adequate treatment modalities. That’s why Phagenyx is an amazing innovation with the potential to change care paradigms. It allows treatment of dysphagia very early in the care pathway, which prevents later complications. Our investment will support the Phagenesis team to make Phagenyx more broadly available, specifically in the United States.”
- Michael Sjöström , Co-Founder and Partner at Sectoral Asset Management
