Arthrosi Secures $153 Million to Accelerate Gout Treatment

October 15, 2025, 3:41 pm
Arthrosi Therapeutics
BiotechDrugDiscoveryGoutPharmaTherapeutics
Location: United States
Employees: 11-50
Total raised: $228M
Arthrosi Therapeutics recently closed a significant $153 million Series E funding round. This vital capital directly supports late-stage clinical development of pozdeutinurad, a promising next-generation URAT1 inhibitor. The San Diego-based biotechnology firm focuses on transforming gout and tophaceous gout treatment. Pozdeutinurad aims to aggressively reduce serum urate levels, diminish painful gout flares, and resolve debilitating tophi. Key pivotal data from fully enrolled Phase 3 trials is anticipated by the second quarter of 2026. This substantial investment accelerates a potentially best-in-class therapy toward market introduction, addressing a critical unmet medical need for millions of patients globally, improving patient lives.

San Diego’s Arthrosi Therapeutics has locked in a substantial $153 million in Series E funding. This massive financial injection propels the company’s lead drug candidate, pozdeutinurad, through critical late-stage clinical trials. The biotech firm targets gout and tophaceous gout, a chronic and debilitating inflammatory condition. This funding represents a significant milestone. It underscores investor confidence in Arthrosi’s innovative approach to an enduring medical challenge.

Arthrosi Therapeutics operates as a late-stage biotechnology firm. Its mission centers on developing advanced treatments for metabolic diseases. Gout remains a widespread and often poorly managed condition. Millions suffer from its excruciating pain and long-term complications. Current treatments often fall short. They leave many patients seeking more effective and tolerable options. Arthrosi aims to fill this critical gap with its next-generation therapy.

The company’s flagship program is pozdeutinurad, also known as AR882. This drug is a highly potent and selective URAT1 inhibitor. URAT1 is a transporter protein. It plays a key role in reabsorbing uric acid in the kidneys. By inhibiting URAT1, pozdeutinurad effectively lowers serum urate (sUA) levels. Elevated sUA is the direct cause of gout. Reducing sUA is paramount to managing the disease.

Pozdeutinurad offers multiple therapeutic benefits. It demonstrably reduces sUA levels. It also works to mitigate the frequency and severity of gout flares. These flares cause intense joint pain and swelling. Furthermore, the drug shows promise in dissolving tophi. Tophi are painful, visible deposits of urate crystals. These often form in severe cases of gout. They cause significant tissue damage and disfigurement. Phase 2 studies showed encouraging efficacy. They highlighted impressive complete resolution of tophi. This suggests a transformative impact on patient health.

The $153 million funding round will primarily finance the completion of pozdeutinurad’s pivotal Phase 3 program. This program includes two large-scale trials: REDUCE 1 and REDUCE 2. Both trials are randomized, double-blind, and placebo-controlled. They are designed for robust data collection. Each study spans twelve months. They meticulously evaluate pozdeutinurad's ability to lower sUA. They also assess its impact on gout flares and tophi resolution.

Enrollment for both REDUCE 1 and REDUCE 2 is complete. This marks a crucial step in the drug's development pathway. The trials are now gathering vital data. Arthrosi expects to report pivotal data from these studies by the second quarter of 2026. These results will determine the drug’s potential path to regulatory approval. Successful outcomes could usher in a new era of gout treatment.

Prime Eight Capital Limited led the Series E funding round. Their leadership signals strong belief in Arthrosi's scientific platform. Other notable investors joined the round. These include CR Biotech, HighLight Capital, HM Venture Partners, and ReliantTech Limited. Existing shareholders also reaffirmed their commitment. This diverse investor base reflects broad confidence in pozdeutinurad’s market potential and clinical promise. The funds will also support broader operational expansion and continued development efforts. Arthrosi's leadership aims for global accessibility for pozdeutinurad.

The history of URAT1 inhibitors is complex. Probenecid, an early URAT1 inhibitor, gained approval in 1951. However, earlier drugs often lacked specificity. They caused various side effects. This spurred efforts to create more targeted inhibitors. AstraZeneca’s Zurampic received FDA approval in 2015. It was also a URAT1 inhibitor. But Zurampic faced commercial struggles. It included a boxed warning and was eventually withdrawn. This illustrates the challenges in developing successful gout therapies.

Despite past setbacks, interest in URAT1 inhibition persists. New companies continue to innovate in this space. Crystalys Therapeutics advances dotinurad, another URAT1 inhibitor. Dotinurad is already approved in Asian markets like Japan. China’s Atom Therapeutic recently reported positive Phase 2b/3 results for lingdolinurad, its own URAT1 inhibitor. These ongoing developments highlight the recognized potential of targeting URAT1. They also underscore the high bar for new entrants.

Arthrosi believes pozdeutinurad stands apart. Its design focuses on high potency and selectivity. This aims to minimize off-target effects. The encouraging Phase 2 data supports its differentiated profile. The company's prior $75 million Series D funding prepared it for this critical late-stage strategy. This new $153 million Series E round ensures the financial firepower to execute. The goal is to bring a potentially best-in-class therapy to patients worldwide.

This substantial investment empowers Arthrosi to accelerate its journey. It brings a new, effective treatment closer to millions afflicted with gout. The biotech sector watches closely. A successful outcome for pozdeutinurad could significantly improve quality of life for many. It represents a major leap in chronic disease management. Arthrosi aims to redefine gout care.