Zucara Therapeutics Announces Strategic Investment from Sanofi as Part of US$20 Million Series B Financing
November 12 2024
Toronto, Canada, November 12, 2024 – Zucara Therapeutics Inc., (“Zucara” or the “Company”) a diabetes life sciences company developing ZT-01, the first once-daily therapeutic to prevent hypoglycemia (low blood glucose levels) in people with diabetes, today announced that Sanofi has made a strategic investment in Zucara as part of the Company’s US$20 million Series B financing (the “Financing”). As part of the agreement, Sanofi will receive an exclusive right of first negotiation.
The Perceptive Xontogeny Venture Fund (“PXV Fund I”) has also invested as part of the Financing, which has the potential to increase to up to US$25 million with participation from other investors. Proceeds from the Financing are expected to fund the remainder of Zucara’s ongoing Phase 2a trial of the effect of ZT-01 On Nocturnal hypoglycemia Events in Type 1 diabetes (“T1D”) mellitus (“ZONE”), and the nonclinical activities to support a once-weekly version of ZT-01.
Chris Garabedian, Portfolio Manager, Venture for Perceptive Advisors, commented, “Having led Zucara’s US$21 million Series A financing in early 2020, we are proud to continue to support the Company in advancing the development of ZT-01, especially alongside strategic partner and world-leading healthcare company, Sanofi. By preventing hypoglycemia in people using insulin therapy, ZT-01 represents a promising approach to improving health outcomes of people living with diabetes.”
About Perceptive Xontogeny Venture Funds
The Perceptive Xontogeny Venture Funds are Perceptive Advisors’ investment vehicles focused purely on early-stage, private venture investments in life sciences companies. Primary investments for the venture funds include companies that are seeking a lead investor for Series A financings, which include both companies that are seeded and operationally supported by Xontogeny LLC, an affiliated biotech accelerator, as well as unaffiliated companies that are seeking direct Series A investments. For more information, visit https://perceptivelife.com/.
About ZT-01
ZT-01 is designed to prevent potentially dangerous low blood glucose by restoring the body’s ability to counterregulate hypoglycemia. In people without diabetes, α-cells secrete glucagon that signals the body to release its own glucose stores to prevent or reverse hypoglycemia. However, in people with insulin-dependent diabetes – including those with T1D and insulin-dependent Type 2 diabetes – evidence suggests that elevated secretion of pancreatic somatostatin (SST) suppresses glucagon release from α-cells. Zucara has demonstrated that, in people with T1D, the glucagon response can be increased with ZT-01, a first-in-class SST receptor 2 antagonist.
About Zucara Therapeutics Inc.
Zucara Therapeutics is developing ZT-01, a first-in-class, once-daily therapeutic to prevent hypoglycemia in people with T1D and insulin-dependent Type 2 diabetes. ZT-01 is designed to inhibit somatostatin, a pancreatic hormone that impairs the glucagon response to hypoglycemia in people with these conditions. ZT-01 is designed to restore glucagon secretion to prevent hypoglycemia, which could dramatically change diabetes disease management and improve both patient health and quality of life. For more information, visit www.zucara.ca.
For additional information, please contact:
Zucara Therapeutics: Michael Midmer, CEO at mmidmer@zucara.ca
