Adipo Therapeutics Secures $1.9 Million Bridge Funding to Advance Obesity and Type 2 Diabetes Treatment with ADPO-002

Adipo Therapeutics, a late-stage, preclinical biopharmaceutical company, has successfully completed a $1.9 million bridge funding round to advance the development of its lead asset, ADPO-002, for the treatment of obesity and Type 2 diabetes. This recent funding brings the total seed funding raised by Adipo to $4 million.

The bridge financing is being utilized to conduct critical studies that aim to demonstrate ADPO-002’s ability to convert energy-storing white adipose tissue into energy-burning brown adipose tissue in human fat. Key investors in Adipo include the Purdue Research Foundation, Elevate Ventures, IU Ventures, and VisionTech Partners, along with several angel investors.

“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,” stated Brooke Beier, senior vice president at Purdue Innovates. “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.”

Christopher Day, CEO of Elevate Ventures, expressed high conviction in Adipo’s leadership and technical team, the science, and the significant unmet market need for novel treatments for obesity and Type 2 diabetes. “The size of the obesity market, along with the lack of treatments that focus on increasing energy expenditure, are among the drivers for investing in Adipo,” he noted.

Adipo’s technology increases energy expenditure by converting energy-storing white fat into energy-burning, metabolically beneficial brown fat. This approach contrasts with newer therapies on the market that primarily focus on appetite suppression to reduce daily caloric intake. “There is a need for new products that work to increase energy expenditure without limiting calorie intake,” emphasized Adipo CEO Karen Wurster.

Research has shown a correlation between higher levels of brown fat and lower odds of obesity, Type 2 diabetes, and cardiovascular disease. ADPO-002 has the potential to be a complementary product to existing weight loss and diabetes drugs, given its ability to increase energy expenditure and improve insulin resistance.

As part of its growth, Adipo has expanded its leadership team with two key members. Dr. Michael Clayman, a former executive at Eli Lilly and Co. and co-founder and former CEO of Flexion Therapeutics, has been named board chair of Adipo. Keith Johns, who was most recently senior vice president of global marketing and alliance management, diabetes and obesity business unit, at Eli Lilly and Co., has joined the management team as chief strategy officer.

Adipo is now raising $35 million in Series A funding to move its product to first human dose, demonstrating safety and efficacy in people. The Series A capital will enable the team to continue its efficient execution to advance ADPO-002, including good manufacturing practice, IND enabling studies, IND submission and approval, and the Phase 1 clinical development program.

Adipo Therapeutics is a privately held, late-stage, preclinical biopharmaceutical company developing a breakthrough approach to treat the dual epidemics of obesity and Type 2 diabetes. Its lead asset, ADPO-002, combines a notch inhibitor with novel nanoparticle technology, specifically designed to infiltrate and release the active ingredient inside the cellular structure of white adipose tissue, resulting in mitochondrial biogenesis and the browning of white adipose tissue.