Seraxis, a US-based developer of therapies for diabetic patients, has closed a $40m series C round led by pharmaceutical firm Eli Lilly.
The round also featured Frazier Healthcare Partners, Polaris Ventures, JDRF T1D Fund and unnamed investors.
Founded in 2013, Seraxis has developed a cell replacement therapy for insulin-dependent diabetes patients. The company uses lab-grown pancreatic islets, a group of cells from the pancreas that produce insulin, which has shown the potential to reverse diabetes in preclinical animal testing.
The company has also built a medical implant device called SeraGraft that ensures the function of its cell replacement therapy without the use of immune system suppression.
Seraxis will use the series C funding to complete the preclinical testing of its lead asset, SR-01, as well as begin first-in-human clinical trials.
William Rust, founder and chief executive of Seraxis, said: “With the continued support of our investors, we believe SR-01 has the potential to become the first clinically validated treatment of its kind.”
Biopharmaceutical firm Medytox led a series B round of undisclosed size for Seraxis in 2016, that also included unnamed series A investors.
In 2013, Seraxis raised an undisclosed amount of funding in a series A round led by East West Capital Partners, with investments from GRI Fund, ASAP Ventures and angel investors.