Gelesis spikes IPO, raises $32m instead

A day after officially spiking its plans for an initial public offering, Gelesis said it raised another $31.5 million for its anti-obesity pill.

The Gelesis100 is designed to induce a feeling of satiety and improve glycemic control, using a super-absorbent hydrogelthat expands in the stomach after being swallowed. Boston-based Gelesis tabled the $56 million IPO in May due to turbulence in the U.S. biotech market, and officially withdrew the flotation Dec. 17 “due to market conditions,” according to a regulatory filing.

A day later Gelesis announced the $31.5 million growth round, with participation from new backer Cormorant Asset Management and existing investors Invesco Asset Management, PureTech and the Priztker/Vlock Family Office. Gelesis, which raised a $22 million funding round in March, said the latest funding brings its total raise to more than $90 million.

The proceeds are earmarked for the completion of a 6-month pivotal trial for Gelesis100, with top-line data expected in the 1st half of 2017, Gelesis said.

“We appreciate the support of Gelesis’ new and existing investors as we aim to bring novel therapies to the market to address the obesity and diabetes epidemics,” co-founder & CEO Yishai Zohar said in prepared remarks. “We look forward to completing our U.S. pivotal trial of Gelesis100 and, if approved, we believe it has the potential to address the significant unmet need for an orally dosed, safe and efficacious therapy to induce weight loss and improve glycemic control.”

A 2nd product, Gelesis200, is under development. Gelesis said part of the new funding will go to comple 1st-in-human studies for that device, “with anticipated read-out of a 3-month proof-of-concept study expected in the 2nd half of 2016,” the company said.

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