Arthrosi Secures $153M to Complete Pivotal Phase 3 Trials - InforCapital

Arthrosi Therapeutics has announced the closing of a $153 million Series E financing to support its late-stage development program for pozdeutinurad (AR882), a next-generation URAT1 inhibitor being evaluated for the treatment of gout and tophaceous gout.

The round was led by Prime Eight Capital Limited with participation from CR Biotech, HighLight Capital, HM Venture Partners, ReliantTech Limited, and existing investors. Proceeds will fund the completion of the pivotal Phase 3 REDUCE 1 and REDUCE 2 trials, both now fully enrolled.

These 12-month, double-blind, placebo-controlled studies are designed to evaluate the ability of pozdeutinurad to reduce serum urate (sUA) levels. Secondary endpoints include the frequency of gout flares and resolution of tophi. Data from both trials are expected in Q2 2026.

Litain Yeh, PhD, CEO of Arthrosi, highlighted the strong backing from new and returning investors as validation of the company’s clinical progress and commitment to addressing unmet needs in gout. He emphasized the goal of delivering a best-in-class option to patients globally.

Prime Eight Capital also noted confidence in the company’s execution capabilities and long-term vision, calling Arthrosi a strong candidate to deliver a globally accessible treatment for gout.

Pozdeutinurad has already demonstrated encouraging efficacy and safety in Phase 2, including complete resolution of tophi in a Phase 2b study. The therapy is designed to selectively and potently reduce sUA by enhancing uric acid excretion via URAT1 inhibition.

Gout affects approximately 13 million people in the United States, with around 2 million suffering from the more severe form, tophaceous gout. The condition is caused by the accumulation of uric acid crystals in joints and tissues, often due to underexcretion of uric acid by the kidneys. Managing sUA levels is critical to preventing progression and complications.