Zucara Therapeutics Closes $25M Series B Financing

Zucara Therapeutics Inc., a company focused on diabetes treatments, has successfully completed the second and final closing of its Series B Financing, securing a total of $25 million. This funding round was bolstered by a $5 million investment from the T1D Fund and other new investors, complementing the $20 million previously contributed by Sanofi and the Perceptive Xontogeny Venture Fund.

This financial boost will support the continuation of Zucara's Phase 2a clinical trial and the development of a once-weekly formulation of their promising therapeutic, ZT-01. ZT-01 is specifically designed to prevent hypoglycemia in diabetes patients by enhancing the body's natural glucagon response, which is often impaired in individuals with Type 1 diabetes and insulin-dependent Type 2 diabetes.

The T1D Fund, recognized as one of the largest disease-focused impact investment funds globally, has partnered with Zucara to advance therapies that could significantly impact Type 1 diabetes treatment. Sylvia Tobé, Managing Director of the T1D Fund, expressed enthusiasm for the collaboration, highlighting the potential of ZT-01 to address a critical complication of Type 1 diabetes. Tobé will also join Zucara's team as a Board Observer, bringing her extensive experience from her previous roles in the biotech sector.

ZT-01 operates by inhibiting somatostatin, a hormone that limits the glucagon response during hypoglycemic events. By restoring glucagon secretion, ZT-01 aims to prevent dangerous drops in blood glucose levels, thereby improving patient care and quality of life for those managing diabetes. This innovative approach positions ZT-01 as a potential game-changer in diabetes treatment.

The T1D Fund, launched in 2016, is dedicated to funding transformative solutions for Type 1 diabetes. It collaborates with various stakeholders, including venture capitalists and corporations, to invest in disease-modifying therapies. The fund's mission is to accelerate the development of treatments that can prevent, manage, and ultimately cure Type 1 diabetes.

Zucara Therapeutics stands at the forefront of diabetes innovation with ZT-01, which targets a key physiological challenge faced by insulin-dependent diabetes patients. The successful completion of its Series B Financing signifies a critical step forward in bringing this first-in-class therapeutic to fruition. As research progresses, the company aims to establish ZT-01 as a pivotal tool in diabetes management, potentially transforming the standard of care for millions worldwide.