Sparrow Pharmaceuticals Raises $95M Series B for Midstage Diabetes Study

Sparrow Pharmaceuticals secured $95 million in Series B funding to advance its lead candidate for Type 2 diabetes in a midstage (phase 2b) clinical trial13.

The round was led by RA Capital Management and Forbion, with previous investors OrbiMed, RiverVest, and US Venture Partners also participating13.

The ongoing phase 2b CAPTAIN-T2D trial tests oral small molecule clofutriben, which inhibits the enzyme HSD-1 to prevent higher cortisol production—believed to worsen Type 2 diabetes by increasing blood glucose and treatment resistance1.

Topline data from the CAPTAIN-T2D trial are expected in 202713.

Sparrow is also exploring the candidate’s potential in other cortisol-related conditions and, in combination with prednisone, for the inflammatory disease polymyalgia rheumatica13.

Sources:

1. https://www.fiercebiotech.com/biotech/sparrow-flits-forward-95m-series-b-midstage-diabetes-asset

3. https://www.fiercebiotech.com/biotech/fierce-biotech-fundraising-tracker-25