Setara Biosciences, a clinical-stage biotech company in San Diego, has raised $90m in a Series A round. The company announced the financing on 30 October 2026 in a release distributed by Business Wire.
No lead investor was named. Deerfield Management, Canaan, Droia Ventures, EcoR1, Euclidean Capital and Regeneron Ventures, all described as existing investors, took part. Jazz Pharmaceuticals became a new shareholder. The company did not disclose a valuation.
“Setara brings together experienced operators, a compelling foundation in human genetics, and a promising pipeline”Jason Fuller, Ph.D., Board Member, Setara Biosciences, and Partner, Deerfield Management
Born from the Jazz–Actio deal
Setara was formed after Jazz Pharmaceuticals acquired Actio Biosciences. Jazz kept Actio's lead programme, ABS-1230 for KCNT1-related epilepsy, which is not part of Setara's portfolio. The remaining programmes moved into the new company, and Jazz took a stake in Setara as part of that deal.
According to The Catalyst Brief, the Jazz–Actio deal was worth up to $1.3bn, including $820m paid upfront, and Jazz had said it would spin out the other assets and keep a stake. Fierce Biotech reported the launch under the headline that Jazz's Actio buyout had given rise to Setara.
The investors backing Setara are the same firms that funded Actio, which means they are putting new money into programmes they already know.
What Setara is developing
Setara uses human genetics to find small-molecule drugs for severe rare diseases. It calls its strategy "One to Many": start with a rare genetic disease and then extend the same drug to more common conditions that share the biology.
Its lead drug is STAR-0871, previously known as ABS-0871. It is an oral small molecule that blocks TRPV4, an ion channel, and the company says it could be the first drug of its kind. It is aimed first at Charcot-Marie-Tooth disease type 2C, an inherited nerve disorder that affects about 2,500 people in the United States, and also at overactive bladder.
The healthy-volunteer part of a Phase 1 trial is complete. Setara plans a Phase 1b study in people with CMT2C, called THERON, in 2027, and a Phase 2a study in overactive bladder. The US Food and Drug Administration has given the drug Rare Pediatric Disease, Orphan Drug and Fast Track designations. Earlier-stage research targets genetic epilepsies and further conditions such as migraine.
Who runs the company
David Goldstein, a co-founder, is president and executive chair. He is staying at Jazz at least until US regulators accept the marketing application for ABS-1230. Co-founder David Breckenridge is chief scientific officer, Pete Condon is chief business officer and Cayce Denton is chief financial officer.
The board includes representatives of Deerfield, Canaan, Droia, EcoR1 and Jazz, along with Emil Kakkis of Ultragenyx and Ben Cravatt of Scripps Research.
Jason Fuller, a partner at Deerfield Management who sits on Setara's board, pointed to the team, the company's grounding in human genetics and its pipeline as reasons for the investment. The release did not give a headcount or a detailed breakdown of how the $90m will be spent.
Company website: setarabiosciences.com