Obalon Therapeutics, Inc., a San Diego, California-based medical technology company, completed a $30m financing.
This included a $20m Series D private equity financing from Axon Ventures, Bader Sultan & Bros. Co. W.L.L., Mirae Asset Venture Investment, NeoPlux Co., Ltd. and Striker Asia Opportunities Fund, and existing investors, Domain Associates, InterWest Partners and Okapi Venture Capital and a $10m term loan from Square 1 Bank.
The company, which brought the total capital raised to $65m since its inception in 2008, intends to use the funds for U.S. clinical trials to support the U.S. Food and Drug Administration (FDA) approval of the Obalon balloon as welll as to develop its pipeline and commercialize the Obalon balloon in territories outside the U.S.
Led by Andy Rasdal, chief executive officer, Obalon develops the Obalon balloon, a novel, nonsurgical, fully-reversible device for weight loss. Approved and available in the European Union, Mexico and the Middle East, the 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.