Averto Medical Inc, a clinical-stage medical device company pioneering minimally invasive gastrointestinal care, announced the closing of an oversubscribed $30.5 million Series A financing.
- 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.
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SOURCE Averto Medical, Inc.
