Existing investors were joined by Founders Fund and Playground Global to help Virta invest into growth after strong peer-reviewed clinical trial results
SAN FRANCISCO, California – April 4, 2018: Virta Health, the first company with a clinically-proven treatment to safely and sustainably reverse type 2 diabetes (T2D) and other chronic metabolic diseases without the use of medications or surgery, announced it has raised a $45 million Series B funding round, bringing the total equity funding to $75 million to date. Key existing investors including Venrock, Obvious Ventures, Creandum, Caffeinated Capital, and Max Levchin’s SciFi VC participated in the round, along with new investors including Founders Fund and Playground Global.
“Virta has created a far better approach to treating type 2 diabetes,” said Bob Kocher, MD, Virta Board Member and Partner at Venrock. “The Virta Treatment actually reverses the disease rather than delaying complications from ongoing management. This is much better because it eliminates suffering and saves far more money than traditional approaches. We are incredibly excited to be part of this vision.”
According to the most recent data from the Centers for Disease Control and Prevention and American Diabetes Association, 30 million people in the U.S. have diabetes, creating an estimated $327 billion economic burden. Cardiovascular disease, a common T2D comorbidity, is even more prevalent, affecting more than 1 in 3 adults in the U.S. (about 92.1 million) and costing the nation over $316 billion.
The clinically-proven Virta Treatment reverses type 2 diabetes and significantly improves several chronic comorbidities, taking direct aim at these skyrocketing healthcare costs and nearly one-third of the more than $3 trillion in annual U.S. healthcare spend.
Recently released 1-year peer-reviewed results from Virta’s ongoing clinical trial demonstrated that the Virta Treatment can quickly reverse and then sustain T2D reversal at one year while substantially improving obesity, blood pressure, cardiovascular disease risk and inflammation. 60 percent of patients receiving the Virta Treatment had T2D reversed and 94 percent of insulin users reduced or stopped usage altogether. Virta estimates that the medical and pharma cost savings alone total $9,600 on average per patient in the first two years.
With a clinically-proven approach, high patient satisfaction and successful enterprise deployments, Virta will use its Series B investment to further improve outcomes, scale the Virta Treatment and invest into growth to help millions of people suffering from reversible chronic diseases.
“We have a unique opportunity to define the standard of care for chronic disease treatment and go from ‘care’ to ‘cure’,” said Sami Inkinen, Virta co-founder and CEO. “This requires substantial investment in machine learning and AI to provide accessible technology tools for both patients and clinicians, in addition to key hires in the product, engineering, data science, and clinical teams.”
Virta will also be investing in its commercial capabilities to drive additional partnerships with employers, health plans, and government, while staying committed to being evidence-based through conducting high-quality research.
“After seeing how it helped me, my doctor not only loves Virta, he recommends it to his other patients, “ says Virta patient Richard Katz. “I tried so many diabetes treatments that failed. This should be the first step people take, before they take medications and insulin.”
For more information about Virta Health and the science behind reversing type 2 diabetes and other chronic metabolic diseases, visit www.virtahealth.com.
About Virta Health
Virta Health delivers the first clinically-proven treatment to safely and sustainably reverse type 2 diabetes and other chronic metabolic diseases without the use of medications or surgery. At one year, 60% of patients in our clinical trial achieved diabetes reversal, 94% of insulin users reduced or eliminated usage altogether and 83% of patients remained active in the trial. Results extended beyond diabetes reversal, with sustained improvements in blood pressure, inflammation, cardiovascular markers, insulin resistance and weight loss. For enterprises, Virta saves nearly $10,000 per patient in medical expenses over the first 24 months while tying treatment fees to successful outcomes. The Virta Treatment, delivered through a technology-enabled online clinic, will help millions of people get their lives back while making type 2 diabetes a thing of the past. To learn more, visit www.virtahealth.com or follow us on Twitter @virtahealth.