A Plymouth medtech startup just landed a fresh $50 million and is aiming it squarely at type 2 diabetes.
Endogenex says the new funding will speed up testing of its ReCET system, an investigational endoscopic therapy for people with type 2 diabetes. The cash is earmarked to expand clinical work, build more devices and scale up patient enrollment for the company’s randomized pivotal study. The raise underscores growing investor interest in duodenum-targeting procedures that try to reset metabolic signaling instead of relying only on long term drug regimens.
As reported by the Twin Cities Business Journal, the $50 million infusion was announced March 25 and will be used to move the ReCET system further into the trial phase. The Business Journal identified Endogenex as a Plymouth, Minn., company and said the funding is intended to support the next steps in clinical testing.
What ReCET does
Endogenex describes the ReCET system as an investigational endoscopic device that uses controlled, non thermal pulsed electric fields to encourage duodenal mucosal regeneration and restore metabolic signaling, according to the company’s website. Endogenex also stresses that the therapy is strictly investigational and not for sale.
The Mayo Clinic notes that ReCET is “a single outpatient procedure that doesn't require daily doses of pharmacotherapy,” a model that is being studied for its potential to improve glycemic control. It is a one and done approach that still has to prove itself in rigorous trials.
Planned pivotal study
The pivotal ReCET trial is designed as a multicenter, randomized, double blind, sham controlled study to assess both safety and effectiveness. The public registry lists an estimated enrollment of about 264 participants and primary endpoints at six months.
ClinicalTrials.gov shows the study's primary completion date as April 1, 2026, with full completion estimated for October 1, 2026. Participants are followed for 12 months, and those randomized to the sham arm may be offered crossover treatment after the blind period ends.
Funding history and context
The $50 million round follows an $88 million Series C in June 2024 that was raised to support completion of Endogenex’s pivotal work on ReCET. Coverage of that earlier financing noted participation from both venture and strategic backers and said the proceeds were intended to finish the company’s investigational device exemption, or IDE, trial. FinSMEs reported on the 2024 round and listed several of the participating investors.
The latest funding gives Endogenex more runway to complete enrollment and aim for the late 2026 readouts that will determine whether ReCET can move toward broader regulatory review. Early feasibility work and smaller studies have shown promise, but experts and prior reporting have warned that solid randomized, sham controlled data will be needed before a procedure like this could see wide adoption, a point emphasized in the Mayo Clinic overview.
