Alcresta Secures $10 Million Series B Financing,
Prepares for 2014 Commercial Launch of Novel Point-of-Care Nutritional Products
Robert Gallotto Promoted to President as Company Completes Transition to Commercial Stage and Prepares for Continued Rapid Growth
NEWTON, Mass. – July 22, 2013 – Alcresta™, a leading medical nutrition company developing innovative enzyme-based products for adults, infants, and individuals battling acute conditions or chronic diseases, today announced that it has secured $10 million in Series B financing. The financing was led by existing investors Bessemer Venture Partners, Frazier Healthcare and Third Rock Ventures and will be used to continue to advance regulatory filings, commercial planning and preparations for the expected 2014 launch of Alcresta's lead nutritional product. In addition, the company has promoted Robert Gallotto, co-founder and chief operating officer of Alcresta, to president.
"This Series B round provides Alcresta with the financial strength to complete our transition from an R&D-focused company to a commercial-stage enterprise and prepare for the launch of our proprietary line of point-of-care nutritional products. Since our launch just a little over a year ago, we have continued to make rapid progress and have achieved significant corporate milestones," said Alexey Margolin, Ph.D., co-founder and chief executive officer of Alcresta. "I am also honored to announce the promotion of Robert Gallotto to president. Bob's contributions have been instrumental to Alcresta's growth and he will play a key role in our transition moving forward."
Alcresta is developing novel nutritional products that bring the science, research and rigor of the pharmaceutical industry together with the broad consumer needs and commercialization timelines of the nutritional products market. The company is creating a new class of tailored, point-of-care nutritional products that can be used in conjunction with current standards of nutritional care to more effectively maximize nutrient and caloric absorption, and, ultimately, change the way nutritional aspects of growth, aging and disease are managed. Alcresta's lead program is a point-of-care enzyme-based product focused on improving the digestion and enabling proper absorption of critically important "good fats" – in particular long-chain polyunsaturated fatty acids (LCPUFAs) like DHA, EPA and AA. Initially, the company is focused on providing this product to individuals who require special nutritional care where there is a known relationship between proper nutrition, caloric intake and weight maintenance – with an anticipated commercial launch in 2014.
"We believe Alcresta has the potential to bring to the market an entirely new class of products for those in need of novel options to help the digestion and absorption of key nutrients that are critical to good health," said Stephen Kraus, partner of Bessemer Venture Partners. "The team has made tremendous advances in the development of its platform and programs and is entering the next phase of growth to commercialize its lead product. With this progress and the team's proven ability to translate promising development programs into successful commercial products, we are confident that Alcresta is positioned to drive real value creation and have a significant market impact."
There is growing recognition of the critical role that improved nutrition plays across a person's lifetime. The demand for high-quality nutritional products is driving the growth of a $36 billion global market for adult and infant nutritional drinks. The global market is expected to expand to more than $50 billion by 2016, primarily due to global demographic growth and awareness of the critical role proper nutritional care plays in the management of acute conditions and chronic diseases in the adult population.
"Alcresta is quickly evolving from a startup company to the leader in the new space of point-of-care enzyme-based nutritional products. The company is driving innovations in nutritional science, which we believe will provide personalized solutions to individuals for improved nutrition," said Mr. Gallotto. "We will continue to build on this momentum as we prepare for commercialization and foster the value of our full line of nutritional point-of-care products. This is an exciting time for the company as we move toward our goal of providing a new generation of innovative medical nutritional products."
About Nutritional Care & The Importance of LCPUFAs
Numerous scientific studies have shown that improved nutrition can be a key factor in overall health. Better nutrition in the pediatric population supports critical early growth and development and lays the foundation for long-term improved health. Adults who strive for a healthier lifestyle are now relying on improved nutrition to drive long-term outcomes.
Proper nutritional care plays an important role in the management of acute conditions and chronic diseases. Ensuring the proper utilization of available fat and calories is a key nutritional goal. To improve caloric intake, avoid malnutrition and reduce deficiency of long-chain polyunsaturated fatty acids (LCPUFAs), people with compromised pancreatic or gastrointestinal function consume nutritional drinks, as a complete meal, to supplement their diet and as part of tube feedings. Despite advances made in nutritional products, malabsorption, of key nutrients, remains a challenge that is not adequately being addressed.
LCPUFAs like DHA, EPA and AA are also known as "good fats." The importance of LCPUFAs is well documented across the full spectrum of patient care from infants to adults and individuals battling acute conditions or chronic diseases. In nutritional drinks, LCPUFAs are supplied as triglycerides (fats) and therefore have to be hydrolyzed (digested) prior to absorption to fully realize their benefits. Unfortunately, when the pancreas, gastrointestinal track or liver is compromised, it can lead to an inability to digest and absorb fats, and result in reduced caloric intake, weight loss and diminished quality of life.
Alcresta is a leading medical nutrition company developing and commercializing innovative enzyme-based products to improve the digestion and absorption of key nutrients to support growth and development and improve nutrition in people battling acute conditions or chronic diseases. The demand for high-value nutritional products is increasing, driving the growth of a $36 billion global market. While there have been important recent advances in nutritional drinks and products, there remains a significant need for enzyme-based nutritional products that support healthier living, maximize nutrient and caloric absorption, and complement conventional medical care. Leveraging its existing proprietary platform of point-of-care nutritional products, Alcresta has developed a lead product designed to improve the digestion and absorption of fats, in particular long-chain polyunsaturated fatty acids (including DHA, EPA and AA), and improve caloric intake. The importance of LCPUFAs is well documented across the full spectrum of patient care from infants to adults and individuals battling acute conditions or chronic diseases. The company's platform is supported by the Alcresta team's extensive experience in pharmaceutical and nutritional product development. Based in Newton, Mass., the company is backed by top-tier venture investors Bessemer Venture Partners, Frazier Healthcare and Third Rock Ventures. For more information, please visit www.alcresta.com.
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