The San Diego-based company was formed after Jazz Pharmaceuticals acquired Actio Biosciences in August for its lead epilepsy program, ABS-1230, leaving behind a portfolio of assets that Setara now intends to carry forward under new ownership.
Setara’s $90 million in Series A financing includes a clinical pipeline built on the idea that rare genetic diseases hold the key to treating far more common conditions.
Leading that portfolio is STAR-0871, a small molecule TRPV4 inhibitor originally developed at Actio under the name ABS-0871. The drug targets Charcot-Marie-Tooth disease type 2C – a rare inherited neuromuscular disorder affecting an estimated 2,500 people in the US caused by gain-of-function mutations in the TRPV4 gene. By selectively blocking the overactive TRPV4 ion channel, Setara’s therapy is designed to address the disease at its genetic root rather than simply managing symptoms.
“Setara’s Series A was built primarily around Actio’s existing investor syndicate, with Jazz Pharmaceuticals joining as a new shareholder following its acquisition of Actio,” David Goldstein, co-founder, president and executive chair of Setara, told BioXconomy. “This approach provided continuity with investors who already knew the team, understood our genetics-driven strategy, and had seen our model validated through Actio’s successful acquisition. These investors believed in the Actio vision, and we’re thrilled to continue our partnership as we carry that vision forward with Setara.”
What makes the program notable beyond its rare disease focus is Setara’s attempt to extend the same biology into the overactive bladder market. Because TRPV4 plays a broader role in bladder and neuromuscular signaling, the company believes insights drawn from a 2,500-patient rare disease population could translate into therapeutic value for a mainstream urological condition a strategy its leadership describes as “one to many.”
“Setara views our investors as long-term partners and prioritizes open, consistent communication and transparency. Several investors are also represented on our board, providing valuable strategic expertise as we advance our pipeline and long-term strategy,” he explained.
Setara has already completed the healthy volunteer stage of a Phase I trial for STAR-0871 (clinical trial number is not publicly available). The company now plans to launch a Phase Ib study named THERON in CMT2C patients in 2027, while simultaneously initiating a Phase IIa trial in overactive bladder. The US Food and Drug Administration (FDA) has granted the drug Rare Pediatric Disease, Orphan Drug, and Fast Track designations.
We asked Goldstein what advice he would give other companies who are looking to raise funding and he told us that firms should “build investor relationships well before you need to raise capital. Investors who understand and believe in the team, science and long-term strategy can become invaluable partners across multiple stages of company building.”