Diabetes and obesity are rising problems in many countries. GI Dynamics ($GID) has been looking to reverse this trend. To that end, it has announced that the first patients have undergone treatment in Australia with the company's EndoBarrier therapy, which is used to treat obesity and Type 2 diabetes. The news sent the Massachusetts company's stock up 7% on the Australian Securities Exchange, according to MassDevice.
EndoBarrier is a gastrointestinal liner that has been studied in 13 clinical trials and in more than 500 patients. It has been shown to lower blood glucose levels and affect weight loss of more than 20%. It is already available in Australia, Chile and certain European markets.
"My expectation is that EndoBarrier Therapy may be the preferred treatment option for many more overweight diabetic patients in my practice," Dr. Harry Frydenberg, director of the Epworth Centre for Bariatric Surgery, Victoria, said of EndoBarrier in a statement. It is estimated that more than 3.5 million Australians have diabetes or are pre-diabetic, according to data from the Australian Diabetes Council.
As we reported the other day, GI Dynamics serves as an example of a U.S. company that has raised money through an IPO in another country (Australia, in particular). The company last year raised $80 million Australian ($82.9 million) through an IPO and U.S. private placement to expand the global reach of EndoBarrier.
GI Dynamics wants to start studies in the U.S. of EndoBarrier and begin commercial sales "in a select number of new countries," according to MassDevice.
- check out the GI Dynamics release
- read MassDevice's take