Sparrow Pharmaceuticals, a company focused on developing therapies for cardiometabolic conditions, recently announced the successful completion of a Series B financing round, raising an impressive $95 million. This significant investment was co-led by two prominent firms, RA Capital Management and Forbion, and also received continued support from existing investors, including OrbiMed, RiverVest, and US Venture Partners.
In connection with this funding, two new members have joined Sparrow’s Board of Directors: Zach Scheiner from RA Capital Management and Nanna Lüneborg from Forbion, bringing valuable expertise to the company’s leadership.
The funding will be primarily dedicated to advancing the development of Sparrow’s lead drug candidate, clofutriben. This innovative treatment is being developed for individuals living with type 2 diabetes (T2D) who also experience elevated cortisol levels. There is a strong scientific basis and a growing awareness among medical professionals that excess cortisol can negatively impact how well current T2D treatments work for some patients. Sparrow is pioneering a new approach to specifically address this distinct patient population, aiming to offer a more effective solution. Clofutriben has already progressed into a Phase 2b clinical trial, known as CAPTAIN-T2D, and the company anticipates sharing the trial results in 2027.
Clofutriben is designed as a once-daily oral medication that works by inhibiting HSD-1, an enzyme that regulates cortisol production within cells, particularly in key metabolic tissues. This novel mechanism of action presents a promising opportunity to complement existing anti-diabetic therapies, offering a new pathway to manage the condition better. Clinical trials have demonstrated that clofutriben can improve glycemic control, even in individuals with elevated cortisol, while maintaining a favorable safety and tolerability profile. Importantly, these studies have shown no evidence of adrenal insufficiency, a potential concern with some cortisol-modulating treatments, nor has there been a need for dose adjustments. Beyond its primary benefit in glycemic control, HSD-1 inhibitors, such as clofutriben, have also shown potential in clinical trials for a range of other improvements. These include positive effects on weight and body composition, lipid levels, blood pressure, and markers related to bone metabolism. Additionally, patients have reported improvements in sleep quality and overall quality of life. These broader benefits are particularly noteworthy because elevated cortisol contributes to a wide array of metabolic dysfunctions, extending beyond just poor glycemic control.
KEY QUOTES:
“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. 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.”
Frank Czerwiec, M.D., Ph.D., Chief Medical Officer
“We are grateful to our investors whose support reflects strong conviction in Sparrow’s strategy and the clinical promise of clofutriben. 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.”
Robert Jacks, President & Chief Executive Officer
