Axios reports that British medtech company Phagenesis confirmed that it raised $42 million in a Series D financing round.
The outlet says CEO Reinhard Krickl confirmed the Manchester, U.K.–based company’s latest funding. According to the report, EQT Life Sciences and Sectoral led the round, with new investors British Parent Capital, Northern Gritstone and Aphelion joining in.
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Axios says Krickl outlined the plans for the funds, which include helping with the U.S. commercialization of the Phagenyx system. The first-of-its-kind therapy to use pharyngeal electrical stimulation (PES). It aims to restore swallowing control in patients with severe dysphagia post-stroke. The FDA granted Phagenyx breakthrough device designation in January 2020. It is also available in Europe.
Phagenesis received FDA de novo clearance for and launched the Phagenyx system in October 2022.
Other intended use of proceeds include clinical trials and real-world data collection to support U.S. reimbursement, Axios reported.
Phagenyx uses PES to target the neurological components of swallowing coordination. The company says its best results come when delivered at the earliest stages after injury. This enhances neurorehabilitation and restores swallowing control.
According to Dr. Wade Smith, professor of neurology at the University of California, San Francisco (UCSF), dysphagia patients can’t manage their own saliva. This creates a high risk for aspiration, thus jeopardizing patient safety.
The potential for Phagenyx to treat patients early in the ICU offers multiple benefits, he said. That includes accelerated recovery, reduced length of hospital stay and the prevention of downstream complications.
“The Phagenyx system is a next-generation therapy for neurogenic dysphagia that has been shown to deliver significant benefits in swallowing safety and swallowing efficiency, which have the potential to translate into substantial health economic benefits due to accelerated patient recovery,” Krickl said in 2022.
