Atmo Biosciences closes fully subscribed $8 million Series B funding round
Atmo Biosciences has raised A$8 million in a fully subscribed Series B funding round.
The raise was led by Japanese multinational company Otsuka Pharmaceutical, an existing strategic shareholder that took up more than its pro rata entitlement.
There was also strong support of the raise from other existing shareholders and new investors, in Australia and the US. The funding will support a forthcoming multi-site pivotal study for an initial U.S. Food and Drug Administration (FDA) submission around the use of Atmo’s gas-sensing capsule to assess gastrointestinal motility (the rate that food moves through the regions of the gut), which is relevant to disorders such as gastroparesis (delayed emptying from the stomach), and slow transit constipation.
It will also help progress Atmo’s broader clinical portfolio, particularly a pilot study using Atmo’s technology as a diagnostic tool for small intestinal bacterial overgrowth (SIBO), a common and debilitating gut disorder which affects 5 percent or more of the general population1 .
Atmo Biosciences CEO Malcolm Hebblewhite said he was delighted by the successful raise, demonstrating continuing support from existing shareholders and interest from new investors.
“With 40 percent of the global population suffering from some sort of functional gastrointestinal disorder 2, there is a huge clinical need and market opportunity to better understand gut health and microbiome function,” Mr Hebblewhite said.
“This successful funding round shows that, even in this challenging financial climate, investors recognize the commercial potential in gut health and the microbiome, and they are confident in Atmo Biosciences’ ability to capitalize on this opportunity.
“I’d particularly like to thank Otsuka Pharmaceutical for its ongoing support. This is a strategic partnership that benefits both our companies. Atmo’s technology has potential applications in several of Otsuka’s businesses, including diagnostics, nutraceuticals, and pharmaceuticals. Atmo can benefit from Otsuka’s well established and extensive product development resources and distribution networks.”
1. SIBO – What Causes It and Why It’s So Hard to Treat; Kresser Institute (2016) https://kresserinstitute.com/sibo-causes-hard-treat/
2. Sperber et al. Worldwide Prevalence and Burden of Functional Gastrointestinal Disorders, Results of Rome Foundation Global Study, Gastroenterology, 2021
NB: The Atmo Gas Capsule is currently an investigational device exclusively for use in clinical investigations and is not available for sale.