SAN DIEGO, Jan. 14, 2015 /PRNewswire/
Obalon Therapeutics, Inc. today announced the completion of a $20 million Series D private equity financing and a $10 million term loan from Square 1 Bank. Proceeds of the new financing will be used primarily to fund U.S. clinical trials to support the U.S. Food and Drug Administration (FDA) approval of the Obalon balloon, a novel, nonsurgical, fully-reversible device for weight loss.
According to the World Health Organization, 500 million people are obese. Bariatric surgery is costly, irreversible and used in less than one percent of the eligible population. Physicians, patients and payers all agree there is a compelling need for new products and technologies to address this gap.
"We are impressed with Obalon's leadership, clinical data and growth strategy and look forward to partnering with the company for years to come," said Scott Foote, senior vice president and managing director of Square 1 Bank's life sciences practice in the West.
A new syndicate of international investors, including Axon Ventures, Bader Sultan & Bros. Co. W.L.L., Mirae Asset Venture Investment, NeoPlux Co., Ltd. and Striker Asia Opportunities Fund, participated in the $20 million Series D financing along with existing investors, Domain Associates, InterWest Partners and Okapi Venture Capital. The Series D and Square 1 Bank funding brings the total capital raised by Obalon to $65 million since its inception in 2008.
"Our new and existing investors recognize the significant potential of the Obalon balloon. We look forward to executing this pivotal clinical trial, which will bring us closer to making the Obalon balloon available to people in the U.S. who seek nonsurgical weight-loss solutions," said Andy Rasdal, chief executive officer of Obalon.
The Obalon balloon is approved and available in the European Union, Mexico and the Middle East. Proceeds from the financing will also be used to fund the continued evolution and development of Obalon Therapeutics' novel pipeline and commercialization of the Obalon balloon in territories outside the U.S.
The Obalon balloon is designed to jump-start weight loss by partially filling the stomach and helping to induce a feeling of fullness to help people eat less. The patient simply swallows a capsule containing a balloon that is then inflated in the stomach. Additional balloons are placed to continue to facilitate weight loss, and at the end of the treatment period, the balloons are removed in a short endoscopic procedure.
The Obalon Balloon is not approved in the U.S. and is available for investigational use only.
About Obalon Therapeutics
Obalon is a private medical technology company based in San Diego, California focused on developing innovative, high-quality gastric balloon technology for weight loss therapy. www.obalon.com.