Retail optimism surged following new real-world data showing that patients with advanced type 2 diabetes sustained weight loss and glycemic improvements two years after a single Revita procedure.
Fractyl Health shares fell 27% in after-hours trading Tuesday after the company announced a public offering of common stock and pre-funded warrants.
The offering includes accompanying common warrants, and Ladenburg Thalmann is acting as the sole book-running manager.
Despite the market’s negative reaction to the capital raise, retail sentiment on Stocktwits remained optimistic, buoyed by the release of strong new clinical data hours earlier.
The company shared two-year follow-up results from the Germany Real-World Registry study, which evaluated the Revita procedure in people with obesity and advanced type 2 diabetes (T2D) who had inadequately controlled glucose levels despite being on up to three glucose-lowering agents (GLAs).
According to the study, a single Revita procedure led to a median weight loss of 9.6%, sustained over two years, with weight decreasing from 104 kg to 97 kg at year one and remaining stable through year two.
Notably, 7 of 8 participants achieved at least a 5% weight reduction, and 5 of 8 saw reductions of 10% or more. Only one participant, who had a history of cortisone therapy known to cause weight gain, experienced a modest weight increase.
Meanwhile, median HbA1c decreased from 9.6% to 7.2%, which was maintained over two years of follow-up. Patients were also able to reduce or stabilize the dosing of GLAs, and there were no device or procedure-related serious adverse events.
Fractyl said the findings support the potential of Revita as a long-lasting, non-drug metabolic therapy and build momentum for its ongoing U.S. pivotal trial, REMAIN-1, which is under an IDE and is designed to assess Revita for weight maintenance after GLP-1 treatment.
The company expects Midpoint Cohort data in the third quarter and primary endpoint data from the Pivotal Cohort in the second half of 2026.
As of now, 34 patients are enrolled in the Germany registry, which is no longer recruiting but will continue with protocol-defined follow-up. Weight loss and glycemic benefits were observed as early as one month post-procedure and persisted throughout the study duration.
Fractyl intends to use net proceeds from the offering, along with existing cash, to support both the Revita and Rejuva pipeline programs, and for working capital and general corporate purposes.
On Stocktwits, retail sentiment for Fractyl was ‘extremely bullish’ amid a 124% surge in 24-hour message volume.
One user said the strong two-year Revita data was a “big win” and that similar setups, including positive clinical news followed by a quick offering, have historically seen shares recover to pre-offering levels.
While the user noted the company “could have done the PR’ing/offering a bit better,” they added the underlying science was “phenomenal” and called Revita a “first-in-class” product with major potential.
Another user said they were buying into Fractyl, looking for either a short squeeze or a potential buyout.
Fractyl’s stock has declined 12.2% so far in 2025.
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