23 March 2020
Sparrow Pharmaceuticals Announces Strategic Pivot and Series A Preferred Equity Round
Based on information that became public between late 2019 and mid-February 2020, Sparrow Pharmaceuticals has recognized an opportunity to develop SPI-62, its best-in-class, proprietary HSD-1 inhibitor, as a potential new treatment for endogenous Cushing’s syndrome.
Endogenous Cushing’s is a rare condition (12,000 US patients) caused by excess production of the natural steroid cortisol due to a tumor. Current global sales of endogenous Cushing’s medicines approach $400M, with large growth potential for a superior new product. HSD-1 inhibition has clinical proof-of-concept in endogenous Cushing’s. SPI-62 has demonstrated superior safety and convenience to current and late-stage pipeline endogenous Cushing’s medicines.
Sparrow will continue to pursue development of novel, proprietary medicines for exogenous Cushing’s syndrome, caused by long-term exposure to steroid drugs such as prednisone. Two million US patients rely on long-term steroid therapy to control autoimmune diseases and other conditions. No available autoimmune disease medicine is strong on all of efficacy, safety, convenience, and cost-effectiveness. The Company aims to deliver that combination of attributes with a fixed-dose combination tablet of SPI-62 and prednisolone. Sparrow forecasts a $14B US total addressable market for such next-generation steroid products.
SPI-62, and the Company's second proprietary HSD-1 inhibitor SPI-09, can also be used to develop next-generation steroid products with other administration routes such as ocular and topical.
Sparrow will offer $20M of Series A preferred equity to develop SPI-62 to Phase 3 readiness as a novel treatment for endogenous Cushing’s. The data from a Phase 2 clinical trial of SPI-62 in patients with endogenous Cushing’s will also be informative for design of Phase 2 clinical trials of SPI-62 + prednisolone to prevent exogenous Cushing’s in patients with autoimmune diseases. Interested parties are invited to contact Sparrow's CEO David Katz, Ph.D.
This is not an offer to sell or a solicitation of an offer to buy securities. Sparrow Pharmaceuticals will only seek investment from “accredited investors” as defined by U.S. federal securities regulations. This presentation contains financial projections and other “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 relating to the Company and its business, including the research, development and commercialization of pharmaceutical products. Such forward looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. No forward-looking statement can be guaranteed. Forward-looking statements in this presentation should be evaluated together with the many uncertainties that affect the Company’s business, and the Company undertakes no obligation to publicly update a forward-looking statement, whether as a result of new information, future events or otherwise. Sparrow Pharmaceuticals is considered to be at a venture stage of corporate development, and as such, it is only suitable for investment consideration by those with sophisticated knowledge of venture capital risk in general and biotechnology in particular. The definitive statement of the terms of any offering will be found in the subscription agreement, as signed by the investor, and not in any prior communications. Any offering is subject to change or withdrawal without notice.