GI Dynamics Goes Down Under To Fund First Endoscopic Treatment For Diabetes

Developing a first-of-its-kind product puts a company in a class of risk that few U.S. public investors or venture capitalists are prepared to bear these days. But Lexington, Mass.-headquartered GI Dynamics Inc., which is developing EndoBarrier as the first endoscopic device treatment for diabetes, was fortunate enough to be able to call on a group of international investors. In July, the company raised 57.5 million Australian dollars ($53.2 million) from undisclosed investors in countries including Australia, Hong Kong, Singapore, the U.K. and the U.S. [See Deal].

Previously, GI Dynamics raised $AU80 million when it went public on the Australian stock exchange in August 2011. The funds are needed to provide the significant development resources needed to complete drug-like clinical trials for its device [See Deal]. The Australia-based financing strategy relied on stent-developer REVA Medical Inc. as a model, says Stuart Randle, president and CEO. GI Dynamics shared board members with REVA, which had successfully gone public in Australia in December 2010 [See Deal]. HeartWare International Inc. was actually the first U.S