Phagenesis, a medical devices company, which specializes in the treatment of swallowing disorders, successfully closes a $42M Series D financing round led by EQT Life Sciences and co-led by Sectoral Asset Management.
Amsterdam, The Netherlands, March 4, 2024 – EQT Life Sciences is pleased to announce that the EQT Health Economics strategy has invested in Phagenesis, a pioneering UK-based company that has developed a revolutionary neurostimulation system to treat swallowing dysfunction. The $42M Series D financing was led by EQT Life Sciences and co-led by Sectoral, with new investors British Patient Capital, Northern Gritstone and Aphelion also joining the round. This substantial investment is a recognition of the transformative potential of Phagenesis’ cutting-edge therapy, Phagenyx®.
The Phagenyx® neurostimulation system targets and restores the neurological components of swallowing coordination and control that are disrupted due to brain injury, including stroke, or because of prolonged mechanical ventilation. Patients with swallowing dysfunction (dysphagia) are unable to safely or effectively eat, drink, or manage their own saliva. Dysphagia can often lead to life threatening complications such as pneumonia and is also associated with substantially higher healthcare costs.
With the recent approval of Phagenyx® by the FDA, the primary focus of this investment is to build commercial infrastructure and to execute a comprehensive and ambitious commercial growth strategy in the United States. The funding will also allow the Company to drive further commercial growth in Europe, deepening the already established business within that region. EQT Life Sciences has developed deep expertise in guiding MedTech, Digital Health and Diagnostics companies through initial commercialization and towards commercial scaling, and as such this investment represents an opportunity to contribute to the development of another top tier company. The funding will also support clinical trials, regulatory activities, as well as research and development of pipeline products.
Drew Burdon, Partner at EQT Life Sciences, said: “Dysphagia is a severe medical condition that affects countless patients in hospital. It can increase hospital length of stay, the risk of complications, and lengthens recovery time. The Phagenyx® System demonstrates significant reductions in hospital length of stay, with a corresponding and substantial reduction in healthcare costs, as evidenced by the Company’s strong portfolio of high-quality clinical studies. This is strongly aligned with EQT’s Health Economics strategy of transforming cutting-edge scientific innovation into impactful and cost-effective healthcare solutions. We‘re excited to support the next phase of Phagenesis’ journey.”
“This investment from a highly experienced international investor syndicate will accelerate access to and adoption of our therapy,” said Reinhard Krickl, CEO of Phagenesis. “We will invest in exceptional talent to scale up our customer outreach and to support passionate clinicians who want to bring our therapy to those who need it. Our novel and proven therapy can help the millions of patients every year who suffer from swallowing disorders.”
As part of this transaction, Drew Burdon, Michael Sjöström (Sectoral) and Mark Wyatt (Northern Gritstone) will join the Phagenesis’ Board of Directors.
Contacts
EQT Press Office, press@eqtpartners.com
About EQT Life Sciences
EQT Life Sciences was formed in 2022 following the integration of LSP, a leading European life sciences venture capital firm, into the EQT platform. As LSP, the firm raised over EUR 3.0 billion and supported the growth of more than 150 companies since it started to invest over 30 years ago. With a dedicated team of highly experienced investment professionals coming from backgrounds in medicine, science, business, and finance, EQT Life Sciences backs entrepreneurs who have ideas that could truly make a difference for patients. The team combines deep sector knowledge, analytical skills, and investment experience to provide the added value that entrepreneurs seek. For more information, go to eqtgroup.com/private capital/life-sciences/
About Phagenesis
Phagenesis® Ltd, is a private MedTech company co-founded by Dr. Conor Mulrooney and Professor Shaheen Hamdy from the University of Manchester in 2007. Phagenesis offers innovative treatments for neurogenic dysphagia using pharyngeal electrical stimulation, PES. The Phagenyx® Neurostimulation System is the result of years of rigorous scientific research, initiated by Professor Hamdy, and has been featured in numerous clinical publications. For additional information, visit phagenesis.com.
