Phagenesis expands Series B Financing to $17 million

Manchester, UK – 22 May 2013 − Phagenesis, the world’s leading company in the treatment of dysphagia, has expanded its Series B financing to $17m. In 2011, Phagenesis announced a €7m Series B financing, led by Inventages Venture Capital.

The increased resources will be used to launch the Phagenyx® treatment, which received its CE Mark in 2012, in new territories and to expand clinical testing in new patient groups. Dysphagia is the inability to swallow safely, a debilitating condition that affects about half of stroke patients. Dysphagia can lead to the inhalation of solids or liquids followed by pneumonia. Current management of the condition includes tube-feeding patients, which can lead to a significant loss of quality of life.

The Phagenyx® treatment involves an electrical stimulus to the oropharynx (a region of the back of the throat) for 10 minutes a day for three consecutive days. Peer-reviewed, randomised clinical trials have shown that this treatment is safe and effective in improving participants’ safe swallowing ability.

Daniel Green, CEO of Phagenesis, said: “Our investors continue to show confidence in our ability to deliver this new technology to doctors to treat patients who might otherwise face a lifetime of tube feeding.” Oern Stuge, MD, recently appointed Chairman of Phagenesis®, said: “Dysphagia is one of the great unmet medical needs in the treatment of stroke, which healthcare systems around the world recognise as an increasingly important challenge both clinically and economically.”

Ashok Dhanrajgir, Director of Phagenesis® and a partner at Inventages, said: “Inventages remains a committed investor and major participant in the expanded Series B Financing, which will enable Phagenesis® to bring this important new technology to a wider patient population.”