Setara Biosciences Launches With $90 Million Financing

The new biotech firm emerges from an Actio Biosciences spinout following an acquisition by Jazz Pharmaceuticals.

Updated on Oct. 30, 2026 in Biotech

Isometric editorial illustration of a glass beaker holding a synthetic compound on a laboratory desk, representing biotech research. — Setara Biosciences has launched with $90 million in series A financing to continue development of rare disease drug candidates. AI Illustration. Upload story photo >

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Setara Biosciences has officially launched with $90 million in series A financing. The company formed as a spinout after Jazz Pharmaceuticals acquired Actio Biosciences for $820 million.

Why it matters

Setara Biosciences was established to continue development of drug programs, including the rare disease candidate STAR-0871, that remained after the corporate acquisition. This ensures the progression of research for conditions with limited existing treatment options.

Setara Biosciences secured $90 million in series A financing, while the previous Actio Biosciences acquisition was valued at $820 million. The lead candidate STAR-0871 targets Charcot-Marie-Tooth disease type 2C, which currently affects approximately 2,500 people in the U.S.

The players

Setara Biosciences

This newly formed biotechnology firm focuses on advancing drug programs, including the treatment of rare conditions like Charcot-Marie-Tooth disease.

Jazz Pharmaceuticals

This global biopharmaceutical company specializes in developing medicines for patients with limited options in neuroscience and oncology.

David Goldstein

He serves as the president and executive chair of Setara Biosciences, leading the company following its transition from Actio Biosciences.

David Breckenridge

He acts as the chief scientific officer at Setara Biosciences and oversees the company's research and drug development pipeline.

The details

The new company retains the remaining pipeline from Actio Biosciences, including STAR-0871, which has already received FDA rare pediatric disease, orphan drug, and fast track designations. Setara has successfully finished the healthy volunteer portion of a phase 1 trial that initially began in March 2025.

March 2025: The phase 1 trial for STAR-0871 began under Actio Biosciences.
September 2026: Jazz Pharmaceuticals acquired Actio Biosciences for $820 million.
2027: Setara Biosciences expects to initiate a phase 1b trial for STAR-0871.

The Big Picture

Setara Biosciences is leveraging the FDA rare pediatric disease designation program to accelerate the clinical development pathway for its lead candidate, STAR-0871.

This news indicates progress toward potential new therapeutic options for patients living with Charcot-Marie-Tooth disease type 2C and overactive bladder. The transition ensures that research into these conditions remains active despite the earlier acquisition of the parent firm.

The takeaway

The formation of Setara Biosciences highlights how successful drug development pipelines can continue through strategic spinouts even after a major pharmaceutical acquisition. Patients and investors should monitor the company's 2027 clinical trial milestones as primary indicators of the potential efficacy for their rare disease portfolio.

What happens next

Setara Biosciences plans to advance its drug candidate STAR-0871 into a phase 1b clinical trial in patients with Charcot-Marie-Tooth disease type 2C in 2027.