Sparrow Pharmaceuticals, a targeted cardiometabolic therapeutics company, today announced the close of a $95 million Series B financing. The round was co-led by RA Capital Management and Forbion with participation from existing investors including OrbiMed, RiverVest, and US Venture Partners. In conjunction with the financing, Zach Scheiner from RA and Nanna Lüneborg from Forbion have joined Sparrow’s Board of Directors.
The proceeds will support development of the company’s lead candidate clofutriben for the treatment of type 2 diabetes (T2D) with elevated cortisol (EC). Based on strong biological rationale and rising clinical recognition, Sparrow is deploying a new mechanism to target a distinct population whose poor response to current T2D treatments is linked to excess cortisol. The company has advanced clofutriben into a Phase 2b trial in T2D with EC (CAPTAIN-T2D) with results expected in 2027.
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“Nearly half of patients with difficult-to-control diabetes display increased cardiometabolic risk associated with elevated cortisol, yet there are no therapies approved for the vast majority of patients with T2D that address this underlying etiology,” said Frank Czerwiec, M.D., Ph.D., Chief Medical Officer. “Prospective studies confirm what endocrinologists have long believed: excess cortisol can drive hyperglycemia by increasing gluconeogenesis, decreasing glucose uptake and disposal, and decreasing insulin synthesis and sensitivity, and thereby also impair the effectiveness of standard-of-care treatments. By directly targeting this causal and multifaceted biology, clofutriben may offer new hope for patients underserved by current therapies.”
“We are grateful to our investors whose support reflects strong conviction in Sparrow’s strategy and the clinical promise of clofutriben,” said Robert Jacks, President & Chief Executive Officer. “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. This significant financial commitment could enable the next big breakthrough in the management of metabolic syndrome.”
Clofutriben is a once-daily, oral HSD-1 inhibitor that modulates intracellular cortisol production in key metabolic tissues, a novel mechanism of action that has the potential to complement existing anti-diabetic therapies. In clinical trials, the candidate has shown improved glycemic control, including in individuals with elevated cortisol, with a favorable safety and tolerability profile and no evidence of adrenal insufficiency or requirement for dose titration. As an added possible benefit, HSD-1 inhibitors, including clofutriben, have also shown potential in clinical trials for improvement in weight and body composition, lipids, blood pressure, and markers of bone metabolism, as well as sleep and quality of life, as elevated cortisol contributes to a spectrum of metabolic dysfunction beyond poor glycemic control.
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