Type 2 insulin pump maker Valeritas raising large equity round

It looks like Valeritas, which is developing insulin pumps for Type 2 diabetes, is in the midst of raising another big round of cash. The New Jersey medical device company filed paperwork with the SEC indicating it’s raised about $22 million in a round that could go as high as $45 million. Valeritas has been ramping up […]

It looks like Valeritas, which is developing insulin pumps for Type 2 diabetes, is in the midst of raising another big round of cash.

The New Jersey medical device company filed paperwork with the SEC indicating it’s raised about $22 million in a round that could go as high as $45 million.

Valeritas has been ramping up commercialization efforts of its V-Go product for several years now. The V-Go, a disposable insulin dispenser meant for adult diabetics, doles out a continuous stream of insulin for 24 hours with on-demand mealtime dosing. It was approved in 2010 by the Food and Drug Administration as an alternative for diabetics who need insulin injections several times a day.

Valeritas raised $100 million in structured debt financing in June 2013 to commercialize the V-Go, building on the $150 million it raised in Series C venture capital in 2011.

The company will not yet comment on the latest fund-raise, a spokesman said.

Valeritas has a number of investors on board, including Welsh, Carson, Anderson & Stowe; MPM Capital; Pitango Venture Capital and Kaiser Permanente Ventures.

The insulin dispensation market is, if not saturated, certainly bountiful with competitors. Most, however, tend to focus on the Type 1 diabetics that are wont to require continuous insulin drips. Valeritas is unique among pump-makers in its focus on Type 2, which is by far the more prevalent form of diabetes, affecting nearly 30 million Americans in the U.S. alone.

At the same time, studies are emerging that find that continuous insulin drips are better for Type 2 diabetics than daily injections. Valeritas released a similar study of its own this May.

Technologies beyond V-Go include Valeritas’ h-Patch, which delivers other compounds beyond insulin, and others that allow for targeted delivery and precise dosing to treat certain conditions.