Fractyl Raises $55M to Test Drug-Free Type 2 Diabetes Treatment

Fractyl’s procedure has shown to be effective on patients in Europe and South America. Later this year, the company will perform a clinical trial in the United States.

Written by Ellen Glover
Published on Aug. 07, 2020
Fractyl Raises $55M to Test Drug-Free Type 2 Diabetes Treatment
Lexington-based Fractyl Labs raised $55M to begin clinical trial of type 2 diabetes treatment
Photo: Shutterstock

Type 2 diabetes was an epidemic plaguing this country long before COVID-19 came on the scene. Those afflicted can lose their eyesight, limbs, and hundreds of thousands of dollars treating the chronic condition with drugs and insulin shots.

Here with a potential alternative is Fractyl, a life sciences startup out of Lexington. With $55 million in fresh funding, the company plans to begin a Food and Drug Administration-approved clinical trial in the United States to test its drug-free treatment.

Revita DMR (duodenal mucosal resurfacing) is a procedure in which a device with a heating element is inserted into the small intestine to intentionally damage the layer of excess tissue that can develop due to a diet high in fat and sugar. Destroying some of that tissue can improve the body’s blood sugar control without escalating drug therapies or insulin injections.

It sounds intense, but Fractyl claims Revita is a “minimally invasive, outpatient procedure” that can be done in just one day.

So far, it has shown promising results in clinical trials carried in Europe and South America. According to Fractyl, just one Revita treatment has shown to be a “safe and well tolerated” treatment of both Type 2 diabetes and co-existing fatty liver disease, triggering “long-lasting” improvements.

Now, it is time to see how the treatment affects American patients.

The company’s latest funding round was led by new investor Taiwania Capital Management Corporation. In conjunction with the financing, Michael Huang, managing partner at Taiwania, will join Fractyl’s board of directors.

“Type 2 diabetes and [non-alcoholic fatty liver disease] are eroding our global health and are responsible for a large portion of global healthcare costs,” Huang said in a statement. “Fractyl has established through rigorous clinical studies that Revita ... has the potential to significantly improve Type 2 diabetes outcomes.”

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