Zucara Therapeutics has announced the successful completion of its US$25 million Series B financing round, securing additional capital to advance ZT-01, the first once-daily therapeutic designed to prevent hypoglycemia in people with diabetes.
The financing round concluded with a US$5 million investment from the T1D Fund: A Breakthrough T1D Venture and other new investors. This follows the initial US$20 million investment from strategic partner Sanofi and existing investor The Perceptive Xontogeny Venture Fund (PXV Fund I) announced earlier.
"We are thrilled to close our Series B financing, which will enable us to complete our Phase 2a clinical trial and the nonclinical activities to support a once-weekly version of ZT-01," said Michael Midmer, CEO of Zucara. "As one of the largest disease-focused impact investing funds in the world, the T1D Fund focuses on funding therapies that have significant potential for clinical impact in Type 1 diabetes, so we are delighted to have their support."
Novel Mechanism Targets Root Cause of Hypoglycemia
ZT-01 represents a significant innovation in diabetes management through its unique mechanism of action. The drug is designed to prevent hypoglycemia by inhibiting somatostatin, a pancreatic hormone that impairs the glucagon response to low blood glucose in people with insulin-dependent diabetes.
In individuals without diabetes, α-cells secrete glucagon that signals the body to release glucose stores when blood sugar drops too low. However, in people with Type 1 diabetes (T1D) and insulin-dependent Type 2 diabetes, elevated pancreatic somatostatin suppresses this natural glucagon release from α-cells, impairing the body's ability to counterregulate hypoglycemia.
As a first-in-class somatostatin receptor 2 (SST2) antagonist, ZT-01 aims to restore normal glucagon secretion, potentially eliminating a serious and sometimes life-threatening complication of diabetes management.
Funding to Advance Clinical Development and New Formulation
The proceeds from this financing round will fund the remainder of Zucara's ongoing Phase 2a clinical trial, known as the ZONE study (ZT-01 On Nocturnal hypoglycemia Events in Type 1 diabetes mellitus). Additionally, the capital will support nonclinical development activities for a once-weekly version of ZT-01, which could further improve convenience for patients.
T1D Fund Managing Director, Sylvia Tobé, commented on the investment: "Our investment builds on funding that our parent organization, Breakthrough T1D, previously granted to Zucara to support the discovery and clinical development of ZT-01. Having followed Zucara for some time, we are excited to support the further advancement of this promising candidate that has the potential to address a common and potentially life-threatening complication of Type 1 diabetes."
Strategic Expertise Added to Board
In connection with the financing, Dr. Tobé will join Zucara as a Board Observer. She brings over a decade of biotech industry experience, having previously served as a Principal at Omega Funds where she focused on early-stage investments and company creation across various therapeutic areas.
Dr. Tobé also provided scientific leadership for multiple discovery programs at Ra Pharmaceuticals, a peptide drug discovery company, both within its internal pipeline and in collaboration with Merck. She currently serves as a Board Director at DiogenX and as a Board Observer at various biotech companies in the auto-immune and regenerative medicine spaces.
Addressing a Critical Unmet Need
Hypoglycemia remains one of the most challenging aspects of diabetes management for patients with insulin-dependent diabetes. Severe hypoglycemic events can lead to confusion, seizures, unconsciousness, and in rare cases, death. The fear of hypoglycemia often leads patients to maintain higher blood glucose levels than recommended, potentially increasing the risk of long-term complications.
If successful in clinical trials, ZT-01 could transform diabetes management by allowing patients to maintain tighter glycemic control without the constant fear of dangerous hypoglycemic episodes. This would represent a significant advancement in improving both health outcomes and quality of life for people with diabetes.
The T1D Fund is an impact investment fund focused on accelerating solutions to treat, prevent, and ultimately cure type 1 diabetes. It partners with additional capital sources, including venture capital, corporations, and foundations to effectively deploy capital towards disease-modifying therapies and potential cures for T1D.
Zucara Therapeutics, based in Toronto, continues to advance its mission of developing novel therapeutics to address the unmet needs of people living with diabetes.
