Sparrow Pharmaceuticals Secures $95M Series B for Diabetes Treatment Development

Sparrow Pharmaceuticals, a Portland, Oregon-based biotech company, has announced a significant boost to its diabetes treatment research with a $95 million series B funding round. The investment, led by RA Capital Management and Forbion, with participation from existing investors OrbiMed, RiverVest, and US Venture Partners, will primarily support the ongoing phase 2b trial of the company's oral small molecule, clofutriben.

Clofutriben: A Novel Approach to Type 2 Diabetes Treatment

Clofutriben represents a potentially groundbreaking approach to treating Type 2 diabetes. The drug is designed to inhibit HSD-1, an enzyme responsible for converting cortisone into cortisol. Elevated cortisol levels can hinder treatment responses in Type 2 diabetes patients by raising blood glucose levels.

Robert Jacks, President and CEO of Sparrow Pharmaceuticals, emphasized the significance of this approach: "Elevated cortisol is now recognized as a key driver of disease progression and treatment resistance in millions of patients with Type 2 diabetes worldwide. Our decision to focus on this patient population reflects a convergence of emerging biological insights, immense clinical opportunity and payer and clinician receptivity."

The CAPTAIN-T2D Trial and Beyond

The double-blind CAPTAIN-T2D trial, which is evaluating clofutriben in patients with Type 2 diabetes and excess cortisol, is set to deliver results in 2027. This pivotal study could potentially validate Sparrow's innovative approach to diabetes management.

In addition to its diabetes focus, Sparrow is exploring clofutriben's potential in other therapeutic areas. The company is investigating the drug's efficacy, in combination with prednisone, for treating polymyalgia rheumatica, an inflammatory joint disease. This combination therapy aims to address the condition while potentially reducing the side effects associated with corticosteroid use.

Sparrow's Journey and Leadership

Founded in 2013 by David Katz, Ph.D., a veteran of Abbott Laboratories and AbbVie, Sparrow Pharmaceuticals has steadily progressed in its mission to develop novel treatments. Katz, who initially served as CEO, has transitioned to the role of Chief Scientific Officer, with Robert Jacks now leading the company as President and CEO.

This latest funding round builds upon Sparrow's previous $50 million series A, secured in May 2021, demonstrating continued investor confidence in the company's approach and potential. As Sparrow advances its clinical programs, the pharmaceutical industry will be watching closely to see if clofutriben can deliver on its promise to address unmet needs in diabetes treatment and beyond.