Runway Growth Capital closed a senior secured term loan of $35 million to SetPoint Medical, a Valencia, California based, privately-held clinical-stage bioelectronic medicine company developing therapies for chronic autoimmune diseases.
In the past two quarters, Runway has announced five life sciences sector deals totaling $175 million in credit; including Allurion, VERO Biotech, Gynesonics, CrossRoads Extremity Systems, and SetPoint.
Founded in 2007, SetPoint is dedicated to developing technologies to treat patients with chronic autoimmune diseases. The company is pioneering a new treatment paradigm, using electrical pulses that activate the body's innate "inflammatory reflex," for rheumatoid arthritis (RA), Crohn's disease and other chronic autoimmune diseases as a safe, cost-effective alternative to drugs and biologics.
"SetPoint is reshaping the treatment paradigm of chronic inflammatory diseases with potentially less risk and lower cost than drug therapy," says Rob Lake, Managing Director and Head of Life Sciences at Runway. "We are thrilled to include SetPoint in Runway's portfolio of innovative life sciences companies and support its effort to ensure that more patients will have access to what is a remarkable reimagining of patient care for those who depend on autoimmune drug therapy, offering a more effective treatment and fewer side effects than anti-inflammatory medication."
"After much due diligence, it was clear that Runway appreciates SetPoint's potential," said Murthy V. Simhambhatla, Ph.D., President and CEO of SetPoint Medical. "Working with a highly regarded lender who understands our business strategy, and has a reputation for being a flexible partner, is precisely what we need to fuel the development of our novel therapeutic platform for patients suffering from rheumatoid arthritis."
The funds will be used to support the ongoing RESET-RA clinical study, which will evaluate the safety and efficacy of the SetPoint bioelectronic platform in patients with moderate-to-severe RA, as well as other development activities as the company advances its technology.