Clinical-stage medical device company Endogenex has closed an oversubscribed Series C financing round, raising $88m to fund the completion of the ReCET Clinical Study.

The pivotal trial of the ReCET System is designed to improve outcomes for individuals with type 2 diabetes.

The financing round saw participation from new investors Lumira Ventures, Hatteras Venture Partners, and Orlando Health Ventures, as well as an undisclosed strategic lead investor.

Existing investors Longitude Capital, Intuitive Ventures, Mayo Clinic, and Santé Ventures also participated in the round.

Endogenex CEO Stacey Pugh said: “This funding will enable us to complete our pivotal clinical study, bringing us closer to offering a groundbreaking solution for type 2 diabetes patients.

“The therapeutic landscape in diabetes continues to evolve, especially around the earlier use of SGLT2i and GLP-1RA. However, there remains a considerable unmet need to address the underlying pathophysiology and progression of the disease.”

The ReCET Clinical Study is a multicentre, prospective, randomised, double-blinded, sham-controlled trial aiming to enrol up to 350 patients across the US and Australia.

Earlier this year, the US Food and Drug Administration issued an investigational device exemption to start the pivotal clinical study of the ReCET System.

The ReCET System utilises highly controlled, non-thermal pulsed electric fields to target the duodenal tissue, potentially initiating the body's natural regenerative process.

This approach is expected to restore cellular signalling from the duodenum, enhancing metabolic function and blood glucose control.

Earlier, the system’s safety and efficacy have been evaluated in feasibility trials such as REGENT-1 US, REGENT-1 Australia, and EMINENT in the Netherlands.