Crystalys Therapeutics Emerges with $205M Series A to Advance Gout Treatment

Crystalys Therapeutics, a San Diego-based biotech company, has burst onto the pharmaceutical scene with a substantial $205 million Series A financing round. The company, founded in 2022, aims to develop a novel treatment for gout, a painful form of arthritis affecting millions worldwide.

Experienced Leadership Team Tackles "Unfinished Business"

At the helm of Crystalys is CEO James Mackay, Ph.D., a veteran in the gout treatment space. Mackay previously led the development and approval of Zurampic (lesinurad), the first URAT1 inhibitor to reach U.S. markets. Despite its initial success, Zurampic was voluntarily withdrawn due to business reasons and safety concerns.

"We always felt like it was unfinished business," Mackay stated, emphasizing his desire to develop a safer and more effective gout treatment. This time, Mackay has assembled a team of experienced professionals, including Chief Medical Officer Nihar Bhakta, M.D., and Executive Director of Operations and Business Development DeAnne Reid.

Dotinurad: A Promising Second-Line Treatment

Crystalys' lead candidate, dotinurad, is a once-daily URAT1 inhibitor that has already secured approval in several Asian markets, including Japan, China, the Philippines, and Thailand. The drug targets one of the two primary causes of hyperuricemia, which leads to gout: insufficient excretion of uric acid from the body.

"The standard of care addresses the production side of that equation," Mackay explained. "It does not address the main reason that people develop gout, which is the lack of excretion."

With the newly secured funding, Crystalys plans to launch two global Phase 3 trials for dotinurad. One trial will focus on gout flare, while the other will investigate the resolution of tophi, uric acid deposits that form on joints.

Strategic Partnerships and Investor Confidence

Crystalys' impressive fundraising success is attributed to its "derisked" asset and experienced development team. The company's founding investors include Novo Holdings and Catalys Pacific, with SR One joining as a co-lead in the Series A round. Other participants include Lightstone VC, Longwood Fund, and Alexandria Venture Investments.

The biotech secured rights to dotinurad from Urica's Fortress Biotech in exchange for common stock shares equaling 35% of Crystalys' outstanding equity. This strategic move, combined with the substantial funding round, positions Crystalys to potentially fill a significant treatment gap in the gout market.

As the company moves forward with its clinical trials and development plans, the pharmaceutical industry will be watching closely to see if Crystalys can deliver on its promise of a safer, more effective gout treatment.