Spruce Biosciences Secures $50 Million Financing to Advance First Potential Treatment for Sanfilippo Syndrome Type B
Key Insights
Spruce Biosciences secured up to $50 million in growth capital from Avenue Capital Group (search) to support development of tralesinidase alfa enzyme replacement therapy (TA-ERT (search)) for MPS IIIB (search).
The financing includes an initial $15 million tranche funded January 2026, with three additional tranches totaling $35 million contingent on regulatory and commercial milestones.
TA-ERT (search) represents a potential first disease-modifying therapy for Sanfilippo Syndrome Type B (search), a devastating neurological disorder with no FDA-approved treatments currently available.
Spruce Biosciences announced a strategic $50 million loan facility with Avenue Capital Group (search) on January 7, 2026, to advance tralesinidase alfa enzyme replacement therapy (TA-ERT (search)) for the treatment of Sanfilippo Syndrome Type B (search) (MPS IIIB (search)). The financing positions the late-stage biopharmaceutical company to potentially deliver the first disease-modifying therapy for this devastating neurological disorder.
Financing Structure and Timeline
The 42-month loan facility provides an initial tranche of $15 million, fully funded on January 9, 2026, followed by three additional tranches totaling up to $35 million. The subsequent funding is contingent upon achieving key regulatory and commercial milestones related to TA-ERT (search)'s development and planned commercial launch.
"We are pleased to partner with Avenue Capital on a strategic financing agreement with attractive terms that strengthens our financial flexibility," said Samir Gharib, President and Chief Financial Officer of Spruce Biosciences. "At the drawdown of the initial $15 million tranche, we expect our cash and cash equivalents to fund planned operations into 2027, supporting the biologics license application (BLA) filing of TA-ERT (search) for the treatment of MPS IIIB (search), while also accelerating pre-launch commercial activities."
Addressing Critical Unmet Medical Need
TA-ERT (search) targets MPS IIIB (search), a condition with no FDA-approved treatments currently available. Chad Norman, Senior Portfolio Manager at Avenue Capital, emphasized the therapeutic potential: "With no FDA-approved treatments currently available to treat MPS IIIB, TA-ERT has the potential to be a groundbreaking advancement for patients and families impacted by this devastating disease."
The investment reflects confidence in Spruce's ability to advance TA-ERT (search) as the first disease-modifying therapy for MPS IIIB (search). "We believe Spruce is well-positioned to advance and potentially launch TA-ERT as the first disease-modifying therapy to treat MPS IIIB, and we're proud to be partnering with this outstanding team to advance that mission," Norman stated.
Financial Position and Operational Runway
As of December 31, 2025, Spruce reported cash and cash equivalents of approximately $48.9 million. Combined with the new financing, the company expects to fund operations into 2027, providing sufficient runway to support the BLA filing process and pre-commercial preparations.
The South San Francisco-based company, which trades on Nasdaq under the symbol SPRB, focuses on developing and commercializing novel therapies for neurological disorders with significant unmet medical need. Armentum Partners (search) served as the company's exclusive financial advisor on the transaction.