Capstone Headwaters, a leading middle market investment banking firm, advised Seraxis, Inc., a biotech company developing a cell replacement therapy for insulin-dependent diabetes, on its recently announced completion of a $40M Series C Preferred stock private financing round. The investment was led by Eli Lilly and Company, with participation from Frazier Healthcare Partners, Polaris Ventures, JDRF T1D Fund, and other investors.
Proceeds from the financing will primarily be used to complete the preclinical testing of SR-01, Seraxis's lead cell therapy treatment for insulin-dependent diabetes and initiate first-in-human clinical trials.
Seraxis has developed a proprietary human stem cell line, SR1423, and manufacturing process for the generation of lab-grown pancreatic islets that mimic native islets in purity and potency. The islets have shown the potential to reverse diabetes in preclinical animal models. The Company has also developed SeraGraft, an implant device and method that enables survival and function of the cell replacement therapy in the absence of immune suppression. Together, this novel treatment modality has the potential to help millions of people with diabetes.
"I am excited to advance our mission of bringing an islet replacement to diabetes patients. Our team will continue to work relentlessly to complete the development of SR-01," said William Rust, PhD, founder and Chief Executive Officer of Seraxis. "With the continued support of our investors, we believe SR-01 has the potential to become the first clinically validated treatment of its kind."
Michael Ewing, Managing Director of Capstone Headwaters, commented “Seraxis’ work represents a generational step forward in the treatment of patients with insulin-dependent diabetes and their families. The ability of Seraxis to further this work is critical to the continued development of cell and gene therapy approaches to cure diabetes and other diseases. Capstone Headwaters is honored to have been able to assist Seraxis in securing this important investment.”