Biopharma startup closes on $1.9M funding round
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A late-stage, preclinical biopharmaceutical company based out of the Indiana Biosciences Research Institute in Indianapolis has completed a $1.9 million bridge funding round.
Adipo Therapeutics said Wednesday the funding will be used to complete critical studies of its lead asset being developed for the treatment of obesity and type 2 diabetes.
The studies are being conducted to demonstrate how the treatment, ADPO-002, can convert energy-storing white adipose tissue to energy-burning brown adipose tissue in human fat, resulting in weight loss.
The bridge round included participation from the Purdue Research Foundation, Indianapolis-based Elevate Ventures, IU Ventures, and VisionTech Partners, along with several angel investors.
The newest funding brings Adipo’s total seed funding to $4 million.
“We are excited by Adipo’s newest milestones. We have assisted Adipo in its novel approach to treat obesity and Type 2 diabetes through IP support and entrepreneur-in-residence resources,” Purdue Innovates Senior Vice President Brooke Beier said in a news release. “The Purdue Research Foundation was an early investor in this technology that originated from Purdue University. We continue to be supportive of the potential for this technology to make a meaningful difference in the lives of people living with obesity and Type 2 diabetes.”
Adipo Therapeutics was founded by Dr. Meng Deng, an assistant professor of agricultural and biological engineering at Purdue, who made the discoveries that the technology is based on and serves as president of the company.
CEO Karen Wurster previously told Inside INdiana Business that the treatment is a first-of-its-kind approach to treat type 2 diabetes by acting directly on the fat and improving insulin resistance.
“While weight loss can be achieved through decreasing calorie intake and/or increasing energy expenditure, the newer therapies on the market today are focused primarily on appetite suppression to reduce a person’s daily caloric intake,” Wurster said in the release. “There is a need for new products that work to increase energy expenditure without limiting calorie intake. Adipo’s technology increases energy expenditure by converting energy-storing white fat into energy-burning, metabolically beneficial brown fat.”
Purdue said ADPO-002 has the potential to be a complementary product to existing weight loss and diabetes drugs.
Adipo recently added Dr. Michael Clayman, a former executive at Indianapolis-based Eli Lilly and Co. to its board of directors, which also includes Wurster and Deng. Additionally, the company hired Keith Johns, a former vice president in Lilly’s diabetes and obesity business unit, as chief strategy officer.
The company is now in the midst of a $35 million Series A round of funding, which will be used to move the treatment to a Phase 1 clinical development program.
Adipo Therapeutics was nominated for a TechPoint Mira Award last year in the Product Innovation of the Year category. It also received a total of $110,000 from winning the Elevate Nexus Statewide Pitch Competition in 2021 and the Innovation Showcase Pitch Competition in 2022.