Advising Phagenesis on its US$42 million Series D financing round

We have advised Phagenesis, a medical device company specializing in the treatment of swallowing disorders, on its US$42 million Series D financing round led by EQT Life Sciences and Sectoral Asset Management. 

Phagenesis Limited is a private medical devices company co-founded by Dr Conor Mulrooney and Professor Shaheen Hamdy from the University of Manchester in 2007. Phagenesis offers innovative treatments for neurogenic dysphagia using pharyngeal electrical stimulation, PES. The Phagenyx® Neurostimulation System is the result of years of rigorous scientific research, initiated by Professor Hamdy, and has been featured in numerous clinical publications.

The combined European and United States investment syndicate was led by EQT Life Sciences, and co-led by Sectoral, with new investors British Patient Capital, Northern Gritstone and Aphelion also joining the round. This investment is primarily intended to support commercialization in the United States and deepen penetration in Europe. It will also support clinical trials, regulatory activities, as well as research and development of pipeline products.

Commenting on the transaction, Corporate Partner, Alexandra Richardson said: "We are delighted to have supported Phagenesis on its US$42 million Series D financing round. As a longtime partner of Phagenesis, we are honoured to have been able to work with the Phagenesis team to support this pioneering UK company that has developed a revolutionary neurostimulation system to treat swallowing dysfunction. This substantial investment reflects investors' recognition of the transformative potential of their cutting-edge therapy, Phagenyx®, and we look forward to the next phase of Phagenesis' journey."

CEO of Phagenesis, Reinhard Krickl comments: “This investment from a highly experienced international investor syndicate will accelerate access to and adoption of our therapy that can help millions of patients every year who suffer from swallowing disorders. Thank you to the Taylor Wessing team whose unmatched advice and experience in the Venture Capital and Life Sciences space has been invaluable in helping us to successfully navigate various transactions and events, not least this latest significant financing round."

The deal was led by partners Ian Moore and Alexandra Richardson, associates Joshua Gertner and Ellie Goonetillake, and paralegal James Giddins in the Corporate team. Further support was provided by partners Ann Casey and Graham Samuel-Gibbon, senior counsel Katie Lewis, and associate Joe Fallon in the Tax and Incentives team.