The drug programs left behind after Jazz Pharmaceuticals' $820 million acquisition of Actio Biosciences have found a new home in Setara Biosciences, a spinout launching with $90 million in series A financing to advance its neuroscience pipeline.
Jazz acquired Actio for $820 million upfront in September to gain the epilepsy drug candidate ABS-1230, leaving Setara to advance the remaining programs in Actio's pipeline. These include the small molecule TRPV4 inhibitor STAR-0871, formerly ABS-0871, for Charcot-Marie-Tooth disease type 2C (CMT2C) and overactive bladder, as well as early-stage discovery programs focused on genetic epilepsies and other indications, including migraine.
Setara has completed the healthy volunteer portion of a phase 1 trial of STAR-0871, which Actio began in March 2025. The company plans to advance the candidate into a phase 1b trial in patients with CMT2C in 2027, supported by FDA rare pediatric disease, orphan drug and fast track designations. Setara also plans to launch a phase 2a study in patients with overactive bladder.
A potential first-in-class therapy, STAR-0871 is designed to inhibit excessive activation of the TRPV4 ion channel caused by gain-of-function mutations in the TRPV4 gene. While CMT2C is a rare inherited neuromuscular disorder affecting approximately 2,500 people in the U.S., overactive bladder represents a much larger potential patient population, affecting tens of millions of Americans, according to the company.
Investors participating in the financing included Deerfield Management, Canaan, Droia Ventures, EcoR1, Euclidean Capital and Regeneron Ventures, along with Jazz, which became a shareholder as part of the Actio acquisition.
Jazz's acquisition of Actio earlier this year also provided an opportunity for Setara to continue advancing the remaining pipeline.
"Setara allows us to take the next step in our journey, to carry forward a pipeline of promising programs for rare diseases, with the potential to ultimately reach much broader patient populations," Setara co-founder, President and Executive Chair David Goldstein, Ph.D., said in the release.
Several members of Actio's leadership team made the move to Setara, including Goldstein, who previously served as Actio's co-founder and CEO. Actio co-founder and Chief Scientific Officer David Breckenridge, Ph.D., also serves in the same role at Setara.