TIDMPRTC
RNS Number : 1240W
PureTech Health PLC
09 December 2019
9 December 2019
PureTech Health plc
PureTech Health Affiliate Gelesis Secures Over $84 Million in
New Capital to Support US Commercialisation of PLENITY (TM)
Vitruvian Partners leads a $63.4 million equity round,
complemented by $21.2 million in new, non-dilutive grant funding
and loans to further support commercialisation efforts
PureTech Health plc (LSE: PRTC) ("PureTech"), a clinical stage
biotechnology company dedicated to discovering, developing and
commercialising highly differentiated medicines for devastating
diseases, is pleased to note that its affiliate Gelesis today
announced it has secured $84.6 million in new capital. In total,
Gelesis has obtained nearly $100 million this year to support the
US launch of Plenity(TM) .
"We are pleased that Gelesis continues to attract impressive
investor interest as they prepare for the US launch of Plenity,"
said Eric Elenko, PhD, chief innovation officer at PureTech.
The full text of the announcement from Gelesis is as
follows:
Gelesis Secures Over $84 Million in New Capital to Support
Commercialisation of PLENITY(TM)
Vitruvian Partners leads a $63.4 million equity round,
complemented by $21.2 million in new, non-dilutive grant funding
and loans to further support commercialisation efforts
BOSTON, Dec. 9, 2019 - Gelesis, a biotechnology company
developing a novel hydrogel platform technology to treat obesity
and other chronic diseases related to the gastrointestinal (GI)
tract, today announced it secured $84.6 million in new capital. In
total, Gelesis has obtained nearly $100 million this year to
support the US launch of Plenity(TM) .
This latest round of equity funding totalling $63.4 million was
led by private equity firm Vitruvian Partners and included other
investors. The proceeds from the financing will be used primarily
to support the US launch of Plenity in the second half of 2020.
"We are delighted to begin this partnership with Vitruvian,
whose mission of driving rapid growth and change across industries
is very much aligned with our approach to launching this
first-of-its-kind product that could potentially make a difference
in the lives of people struggling with excess weight," said Yishai
Zohar, founder and chief executive officer of Gelesis. "With this
new capital, we are well-positioned to enhance our strategic launch
initiatives and leverage our early commercial experience as we
prepare for large scale commercial availability of Plenity in the
US."
Based upon the Gelesis' proprietary manufacturing facility
location, the company was also awarded a grant of $12.9 (EUR11.7)
million from the European Regional Development Fund (ERDF),
regulated by the Puglia Region of Italy. This builds on the $10.6
(EUR9.4) million grant announced in April 2019 and brings the total
non-dilutive funds secured this year to $23.5 million. The company
also further enhanced its financial flexibility by entering into a
long-term, low interest $8.3 million loan agreement.
About PLENITY(TM)
PLENITY is an oral, non-systemic, superabsorbent hydrogel which
has received FDA clearance as an aid in weight management in
overweight and obese adults with a BMI of 25-40 kg/m(2) , when used
in conjunction with diet and exercise. It is made by cross-linking
two naturally derived building blocks-modified cellulose and citric
acid-that create a three-dimensional matrix. PLENITY particles
rapidly absorb water in the stomach and homogenously mix with
ingested foods. Rather than forming one large mass, it creates
thousands of small individual gel pieces with the elasticity
(firmness) of solid plant-based foods (e.g., vegetables) without
caloric value. The PLENITY hydrogel increases the volume and
elasticity of the stomach and small intestine contents and induces
a feeling of fullness and satiety. Once it arrives in the large
intestine, the hydrogel is partially broken down by enzymes and
loses its three-dimensional structure along with most of its
absorption capacity. The released water is reabsorbed in the large
intestine, and the remaining cellulosic material is eliminated
through the body's natural digestive processes. PLENITY is
considered a medical device because it achieves its primary
intended purpose through mechanical modes of action consistent with
mechanobiology constructs. For more information, visit
myplenity.com.
Important Safety Information
-- PLENITY is contraindicated in patients who are pregnant or
are allergic to cellulose, citric acid, sodium stearyl fumarate,
gelatin or titanium oxide.
-- PLENITY may alter the absorption of medications. Read
Sections 6 and 8.3 of the Instructions for Use carefully.
-- Avoid use in patients with the following conditions:
esophageal anatomic anomalies, including webs, diverticuli, and
rings; suspected strictures (such as patients with Crohn's
disease); or complications from prior gastrointestinal (GI) surgery
that could affect GI transit and motility.
-- Use with caution in patients with active GI conditions such
as gastro-esophageal reflux disease (GERD), ulcers or
heartburn.
-- Overall, the most common treatment related adverse events
(TRAEs) were GI-related with 38% of adults in the PLENITY group and
28% of adults in the placebo group.
-- The overall incidence of adverse events (AEs) in the PLENITY
group was no different from the placebo group.
Rx Only. For the safe and proper use of PLENITY, refer to the
Instructions for Use.
About Vitruvian Partners
Vitruvian is an international private equity firm headquartered
in London with offices across London, Stockholm, Munich,
Luxembourg, San Francisco and Shanghai. Vitruvian focuses on
dynamic situations characterised by rapid growth and change across
industries spanning information technology, financial services,
life sciences & healthcare, media, and business and consumer
services. Vitruvian is currently investing from its third fund, the
EUR2.4 billion Vitruvian Investment Partnership III, which is among
the largest pools of capital in Europe supporting innovative and
higher growth companies. Vitruvian Funds have backed over 45
companies and have assets under management of approximately $5.5
billion. Notable investments to date include global market leaders
in their field such as Just Eat, FarFetch, Darktrace, Trustpilot,
Snow Software, TransferWise, Skyscanner and others. The Firm's
previous investments in life science innovators include companies
such as doctari, CRF Health, ADA Health, Dental Monitoring. More
information can be found at: www.vitruvianpartners.com
About Gelesis
Gelesis is developing a novel hydrogel platform technology to
treat overweight and obesity and chronic diseases related to the GI
pathway. Gelesis' proprietary approach is designed to act
mechanically in the GI pathway to potentially alter the course of
certain chronic diseases. In April 2019, Gelesis received FDA
clearance for its lead product candidate, Plenity(TM), as an aid
for weight management in overweight and obese adults with a Body
Mass Index (BMI) of 25-40 kg/m(2) , when used in conjunction with
diet and exercise. Gelesis anticipates Plenity will be available by
prescription in the US in the second half of 2020. Additionally,
Gelesis is developing its second investigational candidate,
Gelesis200, a hydrogel optimised for weight loss and glycaemic
control in patients with type 2 diabetes and prediabetes. This
novel Gelesis hydrogel technology is also being advanced in other
GI conditions, such as non-alcoholic steatohepatitis (NASH) and
Chronic Idiopathic Constipation (CIC).
The Gelesis executive and advisory team includes some of the
world's leading experts in obesity, materials science, chronic
disease research, and commercialisation. Gelesis was co-founded by
PureTech Health (LSE: PRTC), a clinical-stage biotechnology company
dedicated to discovering, developing and commercialising highly
differentiated medicines for devastating diseases. For more
information, visit gelesis.com or connect with us on Twitter
@GelesisInc.
About PureTech Health
PureTech is a clinical stage biotechnology company dedicated to
discovering, developing and commercialising highly differentiated
medicines for devastating diseases, including intractable cancers,
lymphatic and gastrointestinal diseases, central nervous system
disorders, and inflammatory and immunological diseases, among
others. The Company has created a broad and deep pipeline through
the expertise of its experienced research and development team and
its extensive network of scientists, clinicians and industry
leaders. This pipeline, which is being advanced both internally and
through PureTech's affiliates, is comprised of 24 product
candidates and one product that has been cleared by the US Food and
Drug Administration (FDA). All of the underlying programmes and
platforms that resulted in this pipeline of product candidates were
initially identified or discovered and then advanced by the
PureTech team through key validation points based on the Company's
unique insights into the biology of the brain, immune, and gut, or
BIG, systems and the interface between those systems, referred to
as the BIG Axis.
For more information, visit www.puretechhealth.com or connect
with us on Twitter @puretechh.
Ownership Information
PureTech's percentage ownership of Gelesis following the
financing is approximately 22.3% on a diluted basis. This
calculation of PureTech's holding includes issued and outstanding
shares as well as options and warrants to purchase shares, but
excludes unallocated shares authorised to be issued pursuant to
equity incentive plans. PureTech Health also has a right to low
single-digit royalty payments as a percentage of net sales of
certain Gelesis products. Of the $63.4 million equity raised in
this financing by Gelesis, Invesco Asset Management subscribed for
949,623 preferred shares for an aggregate purchase price of $16.4
million. Invesco is a substantial shareholder of PureTech pursuant
to the Listing Rules, and thus this transaction is a smaller
related party transaction falling within the scope of Listing Rule
11.1.10R. Invesco was a shareholder of Gelesis prior to this
financing and its percentage ownership is substantially the same
before and after the financing.
Forward Looking Statement
This press release contains statements that are or may be
forward-looking statements, including statements that relate to the
company's future prospects, developments, and strategies. The
forward-looking statements are based on current expectations and
are subject to known and unknown risks and uncertainties that could
cause actual results, performance and achievements to differ
materially from current expectations, including, but not limited
to, those risks and uncertainties described in the risk factors
included in the regulatory filings for PureTech Health plc. These
forward-looking statements are based on assumptions regarding the
present and future business strategies of the company and the
environment in which it will operate in the future. Each
forward-looking statement speaks only as at the date of this press
release. Except as required by law and regulatory requirements,
neither the company nor any other party intends to update or revise
these forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:
Investors EU media US media
Allison Mead Talbot Ben Atwell, Rob Winder Tom Donovan
+1 617 651 3156 +44 (0) 20 3727 1000 +1 857 559 3397
amt@puretechhealth.com ben.atwell@FTIconsulting.com tom@tenbridgecommunications.com
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END
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