Averto Medical has closed an oversubscribed $30.5m Series A financing round, which will help advance its ColoSeal medical device that avoids the need for ostomy.
The funding round was led by Cormorant Asset Management and supported by Venrock Healthcare Capital Partners, CVF, LifeSci Venture Partners and other investors.
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Averto will use the proceeds to advance the clinical testing of its ColoSeal Intraluminal Diversion System to obtain regulatory approvals.
The system is designed to allow procedures such as colorectal cancer resection while eliminating the need to create an invasive temporary diverting stoma.
It could potentially benefit more than 100,000 patients each year who undergo colorectal surgeries.
In line with the financing, Averto Medical has announced executive appointments.
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By GlobalDataAverto Medical named Dr Ken Song, a physician-scientist and entrepreneur, as executive chairman.
Dr Song said: “Averto Medical is developing a medical device to avoid the need for ostomy, which is a debilitating procedure.
“As a former gastroenterologist who has taken care of patients with ostomies, the value proposition of ColoSeal for patients, providers, and payers is crystal clear.”
Dan Puckett, who played a pivotal role in Shockwave Medical’s growth and IPO, will join the board of directors alongside Bihua Chen, a portfolio manager for healthcare-focused investment fund Cormorant Asset Management.
Averto Medical founder and CEO Kenton Fong said: “I am thrilled to welcome this esteemed group of investors, as well as Ken, Dan and Bihua to our board. We are committed to substantially improving the clinical care and outcome for patients undergoing colorectal surgeries.”
Formerly known as Savage Medical, the company is supported by a syndicate of healthcare institutional investors.
