Debuts with Oversubscribed $30M Series A Financing to Advance Innovative Medical Device that Avoids Need for Ostomy
Summary
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 Medicals 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. 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. 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.