Setara Biosciences spins out of Actio with $90M for rare disease pipeline

· Health · United States

After shipping its precision epilepsy drug to Jazz Pharmaceuticals, Actio Biosciences has spun out the remainder of its genetics-driven pipeline into a new company called Setara Biosciences. Setara is getting a fresh $90 million to develop the pipeline, led by a Charcot-Marie-Tooth disease medicine that Actio was working on when Jazz bought its lead epilepsy program. The formation gives the Actio team a second act and extends a trend of biotechs carving out non-core assets after acquisitions. The funding will support development of the rare disease programs, with the Charcot-Marie-Tooth candidate as the lead asset.

Why it matters：The spinout illustrates how acquisitions increasingly leave behind orphaned pipelines that return to the market as new, funded companies — a financing route for rare disease research.

Key points

  • Setara raised $90 million to develop the pipeline Actio retained.
  • Its lead asset targets Charcot-Marie-Tooth disease.
  • Jazz Pharmaceuticals bought Actio's lead epilepsy program.

Sources (original reporting)

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