BREAKING Sparrow Pharmaceuticals closes $95M Series B co-led by RA Capital and Forbion PIPELINE Clofutriben advances into Phase 2b CAPTAIN-T2D trial MECHANISM HSD-1 inhibition cuts liver cortisol by ~90% REGULATORY FDA Orphan Drug Designation granted in Cushing's syndrome PARTNERS Collaborations with University of Oxford & University of Sheffield READOUT CAPTAIN-T2D topline results expected 2027 BREAKING Sparrow Pharmaceuticals closes $95M Series B co-led by RA Capital and Forbion PIPELINE Clofutriben advances into Phase 2b CAPTAIN-T2D trial MECHANISM HSD-1 inhibition cuts liver cortisol by ~90% REGULATORY FDA Orphan Drug Designation granted in Cushing's syndrome PARTNERS Collaborations with University of Oxford & University of Sheffield READOUT CAPTAIN-T2D topline results expected 2027
Company Profile Clinical-Stage Biopharma Portland, Oregon

Sparrow Pharmaceuticals, Inc. - photographed as it presents itself to the world: a wordmark for a company that would rather be known for its science than its noise.

Turning down cortisol,
one tissue at a time.

A clinical-stage biopharmaceutical company built on a stubborn scientific question - can you keep the power of steroids without the wreckage? Its answer is clofutriben, an oral pill that lowers active cortisol inside specific tissues instead of shutting the whole system down.

Founded 2013 ~18 employees ~$145M raised HSD-1 inhibitor Phase 2b
The Thesis

What Sparrow actually does

A single enzyme, targeted with unusual precision

Steroids are among the most effective medicines ever discovered, and among the most damaging over time. For roughly seventy years the field has lived with that trade-off: the relief of cortisol on one hand, the metabolic toll - high blood sugar, bone loss, weight gain, cardiovascular strain - on the other. Sparrow Pharmaceuticals was founded in 2013 to attack that trade-off directly rather than accept it.

The company develops small-molecule drugs that inhibit 11β-hydroxysteroid dehydrogenase type 1, or HSD-1 - the enzyme that converts inactive cortisone into active cortisol inside tissues like the liver, fat, bone, and brain. Instead of blunting cortisol everywhere in the body, Sparrow's approach quiets it locally, where the excess causes harm, while leaving the adrenal system that the body depends on largely intact.

Its lead drug, clofutriben - known in earlier trials as SPI-62 - is an oral, once-daily pill. In clinical testing it reduced cortisol inside the liver by roughly 90%. That is the whole bet, stated plainly: precision over force.

"An opportunity to potentially solve the 70-year-old puzzle of how to separate the life-changing efficacy of steroid medicines from their severe side effects." Robert Jacks, President & CEO
How It Works

The mechanism, in four steps

Why blocking one enzyme changes the calculus
01

Cortisone arrives

Inactive cortisone circulates through the body, entering tissues like the liver and fat.

02

HSD-1 activates it

Inside the tissue, the HSD-1 enzyme converts cortisone into active cortisol - locally, not through the adrenal gland.

03

Clofutriben blocks HSD-1

The once-daily pill selectively inhibits the enzyme, so less active cortisol is produced where it does damage.

04

Toxicity falls, system intact

Cortisol-driven harm eases while the broader adrenal axis keeps working - a low risk of adrenal insufficiency.

Intracellular cortisol reduction with clofutriben

Illustrative of clinically reported effects. Approximate figures for orientation, not a substitute for trial data.
Liver cortisol
~90%
Brain HSD-1
high
Adrenal suppression
low
By The Numbers

A small company with a large target

Millions of patients, one mechanism, eighteen people
2013
Year founded
$145M
Total raised (A + B)
~18
Employees
~90%
Liver cortisol cut
2027
Phase 2b readout
2
University partners
Who It's For

The patients behind the science

From a rare disease to a mass-market condition

Sparrow's first patients were people with disorders of cortisol excess - endogenous Cushing's syndrome and autonomous cortisol secretion, a milder but far more common form. These are serious, under-served conditions, and clofutriben earned an FDA Orphan Drug Designation in Cushing's syndrome as it moved through Phase 2.

Then the company followed its own science to a much bigger door. Researchers increasingly recognize that elevated cortisol quietly drives disease progression and treatment resistance in a large slice of people with type 2 diabetes - patients whose blood sugar resists standard therapy. That insight reframed Sparrow from a niche endocrinology player into a cardiometabolic company chasing a market measured in millions.

"Excess cortisol can drive hyperglycemia by increasing gluconeogenesis and decreasing glucose uptake and disposal." — Frank Czerwiec, M.D., Ph.D., Chief Medical Officer

The immediate stakeholders are the clinicians, academic researchers, and regulators who evaluate the drug on its way to those patients. The ultimate customer is the person whose diabetes will not budge - and for whom cortisol, not just insulin, may be the missing lever.

Pipeline & Products

What's in development

One mechanism, several serious indications
Lead asset

Clofutriben (SPI-62)

An oral, once-daily, selective HSD-1 inhibitor that lowers active intracellular cortisol in key tissues without suppressing the adrenal system. The core of the entire pipeline.

Phase 2b

CAPTAIN-T2D

The mid-stage trial testing clofutriben in type 2 diabetes with elevated cortisol. Topline results are expected in 2027 - the company's most-watched milestone.

Endocrinology

Cushing's & ACS

Programs in endogenous Cushing's syndrome and autonomous cortisol secretion, including the DC-MACS Phase 2 study run with Oxford and Sheffield.

Emerging

SPI-47

An earlier-stage candidate extending Sparrow's targeted approach to intracellular steroid regulation beyond the lead program.

Pipeline reflects publicly disclosed programs. Clinical development status is subject to change.

The Difference

How Sparrow stands apart

Targeting the enzyme, not the whole hormone

Most drugs that touch cortisol take a blunt approach - either modulating the receptor everywhere or interfering with how the adrenal gland makes the hormone in the first place. Companies like Corcept Therapeutics have built their work around cortisol-receptor modulation. Sparrow chose a different point of attack: the HSD-1 enzyme that switches cortisone into cortisol inside individual tissues.

That distinction matters. By acting locally, clofutriben aims to reduce cortisol's damage in the liver and other tissues while carrying a low risk of adrenal insufficiency - the dangerous shortfall that can come from shutting the system down wholesale. In the diabetes indication, it competes in a crowded field of GLP-1 and SGLT2 drugs, but from an angle none of them address: the cortisol driving the disease underneath.

Precision

Tissue-level action

Lowers cortisol where it harms, not everywhere - preserving the adrenal axis the body needs.

Focus

One mechanism, done well

A lean, ~18-person team concentrated on a single enzyme rather than a sprawling pipeline.

Repurposed insight

Underappreciated science

Built on glucocorticoid biology the broader field had largely set aside - a contrarian starting point.

Business & Backers

How the company is built

Venture-funded, pre-commercial, patiently staged

Sparrow runs the classic clinical-stage biopharma model: develop proprietary drugs through trials, funded by equity rounds from life-sciences investors, with value created by de-risking each clinical step toward approval or partnership. It is pre-revenue by design - the payoff lives on the far side of the data.

Disclosed funding to date

Series A (2021) and Series B (2025)
Series A · 2021
$50M
Series B · 2025
$95M
Series A · 2021

$50 million

Led by OrbiMed with RiverVest Venture Partners and U.S. Venture Partners. Funded the move into Phase 2 and installed Robert Jacks as CEO.

Series B · 2025

$95 million

Co-led by RA Capital Management and Forbion, with OrbiMed, RiverVest and USVP returning - to advance clofutriben in type 2 diabetes.

People

Who runs Sparrow

Scientists and drug developers, many from big pharma
DK

David Katz

Founder & Chief Scientific Officer
RJ

Robert Jacks

President & CEO
FC

Frank Czerwiec

Chief Medical Officer
DF

Dora Ferrari

SVP, Development Operations
JM

Jamie MacPherson

SVP, Regulatory Affairs & QA
CS

Corey Sohmer

VP, Finance & Administration

Founder David Katz previously led drug discovery and personalized-medicine programs at Abbott and AbbVie.

The Story So Far

A decade, one enzyme

From founding to a diabetes pivot
2013

Sparrow is founded

David Katz starts the company in Oregon to develop targeted therapies rooted in glucocorticoid biology the field had underappreciated.

2021

$50M Series A and a new CEO

OrbiMed leads a $50 million round; Robert Jacks joins as President and CEO to push SPI-62 into Phase 2.

2022

Data on the world stage

Sparrow presents SPI-62 pharmacology and clinical data at ENDO, the European Congress of Endocrinology, and EULAR.

2024

Orphan status and academic ties

Clofutriben earns FDA Orphan Drug Designation in Cushing's syndrome; Sparrow partners with Oxford and Sheffield on DC-MACS.

2025

$95M Series B and a diabetes pivot

RA Capital and Forbion co-lead a $95 million round to advance clofutriben in type 2 diabetes with elevated cortisol.

Questions

Frequently asked

The short answers
What does Sparrow Pharmaceuticals do?

It is a clinical-stage biopharmaceutical company developing clofutriben, an oral HSD-1 inhibitor that lowers active cortisol inside specific tissues to treat cortisol-driven disease - type 2 diabetes, Cushing's syndrome, and autonomous cortisol secretion.

What is clofutriben and how does it work?

Clofutriben (formerly SPI-62) is a once-daily oral small molecule that inhibits HSD-1, the enzyme that converts inactive cortisone into active cortisol inside tissues like the liver. Blocking it locally reduces cortisol's harm - cutting liver cortisol by about 90% - without shutting down the adrenal system.

How much funding has Sparrow raised?

Approximately $145 million disclosed: a $50 million Series A in 2021 and a $95 million Series B in 2025, backed by OrbiMed, RA Capital Management, Forbion, RiverVest, and U.S. Venture Partners.

Who founded and who leads the company?

It was founded in 2013 by David Katz, who serves as Chief Scientific Officer. Robert Jacks is President and CEO, and Frank Czerwiec is Chief Medical Officer.

When will there be clinical results?

The Phase 2b CAPTAIN-T2D trial in type 2 diabetes with elevated cortisol is underway, with topline results expected in 2027.

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Profile compiled from public sources including company press releases, GlobeNewswire, BioSpace, Fierce Biotech, and Sparrow Pharmaceuticals' own materials. Figures are approximate where noted.