Obesity is a pervasive and rapidly proliferating global epidemic. An estimated 31% of the U.S. population is obese, with 6% severely or morbidly obese. The combined co-morbidities of obese patients is regarded as the single biggest drain on the U.S. healthcare system, impacting rates of multiple health problems, from cardiovascular disease to diabetes.
Obetat’s recent scientific discoveries in thermogenesis provide a treatment for severe obesity. The emerging growth company is developing its leading compound TatdMt, described as a first-in-class, rapid acting, fat mass reducing drug, targeted exclusively for severe obesity.
Unlike White Adipose Tissue (WAT) or white fat which serves as a storage source of energy, Brown Adipose Tissue (BAT or brown fat) is an energy burning fat, whose purpose is to generate heat through thermogenesis. Its critical role is that of a biological tool to provide warmth and consistent body temperature in infants. Until recently, it was thought to have ended as we moved into adulthood. It wasn’t until cancer researchers, using advanced imaging systems, noticed dark spots that were not cancers, but rather, deposits of mineral rich mitochondria in brown fat.
The company hopes to continue development via a four month animal trial, to provide data on both efficacy and safety. If the data is promising, it could signify a dramatic inflection point and value increase for investors.
The company is conducting a founder round financing of up to $2.5 million. Investment is structured as a convertible note with a warrant to convert at a 25% discount to the Series A financing which will be conducted after the animal trial results. The financing is aimed at funding the IND-enabling preclinical trials and developing the formulation, including CMC works for IND filing with the FDA.