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Pharma & Biotech

PureTech affiliate Gelesis secures $85mln to launch obesity drug in US

Of these, US$63.4mln were raised by equity funding alongside a US$12.9mln grant by the European Regional Development Fund plus a US$8.3mln long-term loan

PureTech Health plc’s (LON:PRTC) affiliate company Gelesis secured US$84.6mln in new capital to support the US launch of Plenity, a weight management drug for people suffering from obesity.

Of this, US$63.4mln were raised by an equity funding led by private equity firm Vitruvian Partners, alongside a non-dilutive US$12.9mln grant by the European Regional Development Fund plus a US$8.3mln long-term loan.

READ: PureTech loses ground after Karuna investment raises new funds

FTSE 250-listed PureTech, which invests in businesses developing medicines to combat serious diseases, has a 22.3% diluted stake in Gelesis after this latest funding.

“This is a clear sign that Gelesis will launch Plenity directly thus their success in executing this launch, to happen during 2020, will be the key catalyst in driving this element of the portfolio value,” analysts at Liberum said in a note.

Shares in PureTech rose 4% to 264p at the opening bell on Monday.

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