Endogenex Pockets $50M Series C Extension for Endoscopic Diabetes Procedure

Endogenex, a clinical-stage company developing a new type 2 diabetes (T2D) treatment, closed a $50 million extension of its Series C financing.

The company said the proceeds will help fund completion of its pivotal ReCET clinical trial and support its path to U.S. Food and Drug Administration (FDA) approval. This extension adds to the $88 million Series C that Endogenex closed in June 2024, bringing its total Series C financing to $138 million.

The company is building a minimally invasive, outpatient endoscopic procedure that leverages non-thermal pulsed electric fields to treat inflamed tissue and support health cell regeneration in the duodenum.

The company said evidence suggests when the duodenum is inflamed, the gut’s ability to sense and communicate with the organs that regulate glucose, appetite, digestion, and metabolism is disrupted. This dysfunction can worsen or contribute to the cause of T2D.

The ReCET study is evaluating the Endogenex system’s safety and effectiveness. The study earned IDE approval in November 2023 and will enroll patients in the U.S. and Australia.

“This financing puts us in a strong position to complete our pivotal study and take the ReCET System through FDA approval,” said Stacey Pugh, CEO of Endogenex. “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.”