Spruce Biosciences secures $5.5M from patient groups

Spruce Biosciences said on Friday it received $5.5 million in funding from patient advocacy groups to advance its rare disease treatments.

The biopharmaceutical company, which focuses on developing therapies for rare endocrine disorders, did not specify the names of the advocacy groups involved or the terms of the funding. The proceeds will be allocated toward ongoing clinical trials and potential expansion of its pipeline, Spruce said in a statement.

Rare disease treatments often rely on partnerships with patient organizations to secure early-stage financing, as traditional venture capital and public markets may view such therapies as high-risk investments. Spruce’s lead candidate targets congenital adrenal hyperplasia, a genetic disorder affecting the adrenal glands.

The company, which went public in 2021 via a $150 million initial public offering, has faced challenges in advancing its programs due to limited liquidity and investor skepticism around rare disease therapies. The new funding provides a short-term liquidity boost but does not address longer-term capital needs, analysts noted.

Spruce Biosciences shares, which have declined over 90% since its IPO, were not immediately available for comment on the stock market reaction to the announcement.