Sparrow Pharmaceuticals Secures $95M Series B for Diabetes Treatment

Sparrow Pharmaceuticals, a Portland, Oregon-based biotech company, has announced a significant boost to its diabetes research efforts 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

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. By targeting this mechanism, Sparrow aims to address a key challenge in diabetes treatment: elevated cortisol levels, which can hinder treatment response and contribute to disease progression.

Robert Jacks, Sparrow's President and CEO, emphasized the importance 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 series B funding will primarily support the ongoing CAPTAIN-T2D trial, a double-blind phase 2b study evaluating clofutriben in patients with Type 2 diabetes and excess cortisol. Results from this trial are expected in 2027, potentially marking a significant milestone in diabetes treatment.

Sparrow's ambitions for clofutriben extend beyond diabetes. The company is also exploring the drug's potential in combination with prednisone for treating polymyalgia rheumatica, an inflammatory joint disease. This combination therapy approach aims to not only treat the condition but also reduce 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 has shown steady progress in its drug development efforts. 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 on 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 potentially other cortisol-related conditions.