Arboretum Ventures leads financing, with participation from existing investors, as Endogenex advances its novel treatment targeting a damaged duodenum as a driver of type 2 diabetes
MINNEAPOLIS, March 25, 2026 (GLOBE NEWSWIRE) -- Endogenex, a clinical-stage medical technology company pioneering a new treatment for type 2 diabetes (T2D), today announced the closing of a $50 million extension of its Series C financing. Arboretum Ventures joined as a new lead investor, with existing investors participating as well. The proceeds from this financing will fund completion of the company's pivotal ReCET Clinical Study and support the company's regulatory path to FDA approval.
This extension builds on the $88 million Series C that Endogenex closed in June 2024, bringing total Series C financing to $138 million.
Endogenex is developing a minimally invasive, outpatient endoscopic procedure that uses non-thermal pulsed electric fields to treat inflamed tissue and support healthy cell regeneration in the duodenum, the first section of the small intestine. Growing evidence suggests that when the duodenum is inflamed, it disrupts the gut's ability to sense and communicate with the organs that regulate blood sugar, appetite, digestion, and metabolism. This gut dysfunction may worsen or even contribute to the cause of type 2 diabetes.
"This financing puts us in a strong position to complete our pivotal study and take the ReCET System through FDA approval," said Stacey Pugh, CEO of Endogenex. "Type 2 diabetes continues to take a heavy toll on patients, providers, and the healthcare system. Even with the best available therapies, including GLP-1 receptor agonists and SGLT2 inhibitors, the disease often continues to progress. We believe that is because an important part of the disease has gone untreated: the gut. By restoring the duodenum to a healthier state, we aim to help patients do more than manage their symptoms. We want to potentially alter their disease progression, and this funding moves us meaningfully closer to that goal."
"We are proud to lead this financing and to partner with the Endogenex team at this stage of its development," said Dr. Tom Shehab, Managing Partner at Arboretum Ventures. "As a gastroenterologist, I recognize the scientific rationale of targeting the duodenum as a likely contributor to Type 2 Diabetes. The ReCET System represents a compelling and important new tool for a disease that affects hundreds of millions of people worldwide. We look forward to supporting Endogenex as it advances through its pivotal study.
The ReCET Clinical Study is a multicenter, prospective, randomized, double-blinded, sham-controlled study assessing the safety and effectiveness of the Endogenex System. The study, which received Investigational Device Exemption (IDE) approval from the FDA in November 2023, will enroll patients at clinical sites in the United States and Australia.
About Arboretum Ventures
Arboretum Ventures is a venture capital firm specializing in the healthcare sector. Founded in 2002, the firm has raised $1 billion in capital across its funds, with its most recent Fund VI closing in 2023 at $268 million. Arboretum focuses on capital‐efficient investment opportunities in medical devices, life science tools & diagnostics, tech‐enabled care delivery, and pharma adjacencies. Arboretum’s guiding vision is to identify transformative healthcare companies developing novel solutions to significant healthcare issues that simultaneously reduce cost and improve outcomes. For information, visit www.arboretumvc.com.
About the ReCET Clinical Study
The ReCET Clinical Study is a multicenter, prospective, randomized, double-blinded, sham-controlled study assessing the safety and effectiveness of the Endogenex System. The pivotal study received IDE approval in November 2023. The study will enroll patients at clinical sites in the United States and Australia.
About the Endogenex Procedure
The Endogenex procedure is a novel, minimally invasive, outpatient endoscopic procedure that targets the cellular pathology of the duodenum, the first section of the small intestine. When the duodenum is inflamed, it disrupts the gut's ability to sense and communicate with the organs that regulate blood sugar, appetite, digestion, and metabolism. This dysfunction may worsen or cause type 2 diabetes.
The Endogenex System applies highly controlled, non-thermal pulsed electric fields to the mucosa and submucosa of the duodenal tissue, supporting healthy cell regeneration and aiming to restore proper metabolic signaling from the gut. The system has been evaluated in feasibility studies, including REGENT-1 US, REGENT-1 Australia, and EMINENT in the Netherlands, with preliminary outcomes presented at medical conferences globally.
The Endogenex System has received FDA Breakthrough Device Designation for treating type 2 diabetes in adults whose blood glucose levels are inadequately controlled by glucose-lowering medications.
About Endogenex
Founded in partnership with Mayo Clinic, Endogenex is pioneering a treatment for type 2 diabetes that targets what research now points to as a likely cause: a damaged duodenum. The company’s novel, outpatient endoscopic procedure uses non-thermal pulsed electric fields (PEF) energy to treat inflamed and dysfunctional tissue associated with type 2 diabetic duodenopathy. A specialized Endogenex catheter delivers PEF to the mucosa and sub-mucosa duodenal tissue, initiating the body’s natural process of cell regeneration. Our goal is to restore the gut to a healthier state, so we may help patients do more than manage their symptoms — and potentially slow, or even stop, their disease progression. By following the science to the gut, we hope to redefine what’s possible for diabetes care.
For more information, including about the ReCET Study, which is currently enrolling new patients, please visit www.endogenex.com and www.recetstudy.com.
Inquiries:
Greg Chodaczek greg@gilmartinir.com
