Proceeds from the Novo-backed series B round will be used to advance Spruce Biosciences' congenital adrenal hyperplasia candidate into phase 2 trials.

US-based Spruce Biosciences, which is developing treatments for a genetic disorder known as congenital adrenal hyperplasia (CAH), secured $88m in series B financing from investors including pharmaceutical firm Novo yesterday.

Life sciences investment firms Omega Funds and Abingworth co-led the round, which also featured RiverVest Venture Partners, HealthCap Partners, Rock Springs Capital, Surveyor Capital, Aisling Capital and Sands Capital.

Spruce is working on a non-steroidal molecule called tildacerfont to combat classic CAH, a condition where a genetic mutation causes the adrenal glands to stop working correctly and prevents the body from properly regulating cortisol, also known as the stress hormone.

The funding comes as Spruce is enrolling patients for a phase 2 clinical trial for tildacerfont and plans to test whether it is effective enough for doctors to reduce the prescription of high doses of glucocorticoid (GC) steroids.

The company had previously raised $20m in a 2017 series A round and identified Novo and RiverVest Venture Partners as existing investors this week.

Richard King, Spruce’s president and chief executive, said: “We are thrilled to partner with these highly respected investors, who have a track record in backing the most promising science and a history of successful biopharmaceutical company development.

“I look forward to leading our highly experienced management team as we advance the development of tildacerfont in CAH and other indications for the benefit of this underserved patient population.”

Robert Lavine

Robert Lavine is special features editor for Global Venturing.