- Cormorant Asset Management leads financing with
participation from Venrock Healthcare Capital Partners, LifeSci
Venture Partners, CVF, and others
- Ken Song, MD joins as
Executive Chairman with Dan Puckett
and Bihua Chen also joining the
Board of Directors
SAN
FRANCISCO, May 7, 2024 /PRNewswire/ -- Averto Medical
Inc ("Averto", "The Company"), a clinical-stage medical device
company pioneering minimally invasive gastrointestinal care, today
announced the closing of an oversubscribed $30.5 million Series A financing. Cormorant Asset
Management led the financing with participation from Venrock
Healthcare Capital Partners, LifeSci Venture Partners, CVF, and
other investors.
The financing will support advancing Averto Medical's clinical
testing of the ColoSeal™ Intraluminal Diversion System towards
regulatory approvals. ColoSeal™ has the potential to help over
100,000 patients annually who undergo colorectal surgeries by
avoiding the need to create an invasive temporary diverting ostomy.
Early clinical data has already shown promising results to address
this multi-billion dollar market opportunity.
In connection with this financing, Averto Medical further
announced that Ken Song, MD will
serve as Executive Chairman with Dan
Puckett and Bihua Chen
joining the board of directors. Dr. Song is a physician scientist
and serial entrepreneur who has successfully led several companies
(Ariosa Diagnostics, Omniome, RayzeBio) across the life sciences
space resulting in several launched products and over $5 billion in realized company value via
acquisitions. Mr. Puckett was most recently Chief Financial Officer
at Shockwave Medical, Inc. He helped lead Shockwave from a
pre-commercial stage private company through its initial public
offering in 2019, growing revenue to $730
million in 2023 and a multi-billion dollar market
capitalization. Ms. Chen is Portfolio Manager for Cormorant Asset
Management, a healthcare focused investment fund with over
$2 billion under management that has
supported numerous successful companies from inception to exit.
"Averto Medical is developing a medical device to avoid the need
for ostomy, which is a debilitating procedure," said Dr. Song. "As
a former gastroenterologist that has taken care of patients with
ostomies, the value proposition of ColoSeal™ for patients,
providers, and payers is crystal clear. I felt compelled to become
involved to work with the team to progress the device through
clinical studies and ultimately approval."
"I am thrilled to welcome this esteemed group of investors as
well as Ken, Dan and Bihua to our board. We are committed to
substantially improve the clinical care and outcome for patients
undergoing colorectal surgeries," said Kenton Fong, MD, Founder and Chief Executive
Officer of Averto Medical.
About Averto Medical:
Averto Medical, Inc., formerly known as Savage Medical, Inc., is
a clinical-stage medical device company dedicated to transforming
gastrointestinal care. Its first product, the ColoSeal™
Intraluminal Colonic Diversion System enables procedures such as
colorectal cancer resection without the need to create an invasive
temporary diverting stoma. Averto Medical is backed by a syndicate
of leading healthcare institutional investors. For more
information, visit the company's website at www.avertomed.com.
Media Contact:
Dean Hu
510-206-0549
377137@email4pr.com
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SOURCE Averto Medical, Inc.