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- Arthrosi Therapeutics
Arthrosi Therapeutics Acquisition, Valuation, Funding & Investors
Arthrosi Therapeutics was acquired by Sobi for $1.5B in December 2025.
Cumulative funding Arthrosi Therapeutics raised
$277M
across 8 funding rounds
Key investors in Arthrosi Therapeutics
Highlight Capital
Viva BioInnovator
Viva Ventures Biotech Fund
Xiamen Changrong Investment Management
Maxpro Ventures
HM Venture Partners
CR Biotech
Guangrun Health Industry
About Arthrosi Therapeutics
Arthrosi Therapeutics is a San Diego-based biotechnology company focused on small molecule drugs for osteoarthritis pain and cartilage repair. Its pipeline includes ATR-001, a TRPV1 antagonist in preclinical testing for knee OA. Founded in 2020, the firm licenses compounds from universities in California and collaborates with CROs in Phase 1 readiness. Arthrosi targets the $6 billion OA market, emphasizing oral therapies over injectables.
Founded
2017
HQ
Website
Status
Acquired
Customer focus
B2C
Revenue model
Product sales
Valuation
$800M (Jan 2024)
Sectors
Arthrosi Therapeutics Acquisition
Arthrosi Therapeutics was acquired by Sobi for $1.5B on 13 December 2025.
Before the acquisition Arthrosi Therapeutics had raised $277M across 8 funding rounds.
Arthrosi Therapeutics, a San Diego-based late-stage biotechnology company incubated by Viva Biotech, develops pozdeutinurad (AR882), an investigational once-daily oral URAT1 inhibitor for progressive and tophaceous gout, currently in two fully enrolled global Phase 3 trials (REDUCE 1 and REDUCE 2) with data expected in 2026. Swedish Orphan Biovitrum AB (Sobi), a Stockholm-listed biopharma company focused on rare diseases with 2025 revenue of SEK 28 billion and approximately 1,900 employees, acquired Arthrosi to expand its gout franchise and pipeline. The deal, announced December 13, 2025, includes an upfront cash payment of USD 950 million (SEK 9.1 billion, subject to adjustments) and up to USD 550 million in contingent clinical, regulatory, and sales milestones, for a total value of up to USD 1.5 billion; Sobi financed the upfront primarily through debt via existing and new credit facilities from Handelsbanken and Danske Bank, with Barclays as financial advisor and McDermott Will & Emery as legal counsel; Arthrosi was advised by Centerview Partners and Goodwin Procter. The acquisition closed February 9, 2026, with Sobi acquiring all outstanding shares and common stock equivalents, integrating Arthrosi's team and asset to accelerate commercialization of pozdeutinurad, which targets patients with unresolved symptoms despite first-line therapies and could drive Sobi's growth through the mid-2030s. Rights to pozdeutinurad in Greater China are held by ApicHope. Viva Biotech anticipates a USD 40 million gain from the deal, contingent on milestones, and secured a new statement of work with its CDMO unit Langhua Pharmaceutical for API supply to Arthrosi post-acquisition. Sobi's CEO Guido Oelkers highlighted the asset's differentiation and accretive impact on mid- to long-term growth and margins, while Arthrosi's CEO Litain Yeh emphasized Sobi's global commercialization expertise to advance pivotal data and potential filings.
| Acquirer | Date | Type | Price |
|---|---|---|---|
| 13 Dec 2025 | Strategic M&A | $1.5B |
Arthrosi Therapeutics Valuation
Arthrosi Therapeutics is currently valued at $800M, based on its Series A in January 2024.
Arthrosi Therapeutics' valuation has grown 182x from $4M at its Series A in April 2017 to $800M in January 2024, across 3 priced rounds.
Arthrosi Therapeutics valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Jan 2024 | Series A | $800M |
| Mar 2023 | Series A | $800M |
| Apr 2017 | Series A | $4M |
Arthrosi Therapeutics Funding History
Arthrosi Therapeutics has raised a total of $277M across 8 funding rounds.
Arthrosi Therapeutics' first fundraising round was a $300K Series A in April 2017. The most recent completed round was a $153M Series E in June 2025.
Arthrosi Therapeutics funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jun 2025 | Series E | Prime Eight Capital (lead); HM Venture Partners; Maxpro Ventures; Highlight Capital; CR Biotech; ReliantTech | $153M | - | Arthrosi Therapeutics, a San Diego-based late-stage biotech founded in 2018, develops pozdeutinurad (AR882), a highly potent and selective next-generation URAT1 inhibitor aimed at reducing serum urate levels, gout flares, and dissolving tophi in patients with gout and tophaceous gout. The company closed a $153 million Series E financing on October 8, 2025, led by Prime Eight Capital with participation from CR Biotech, HighLight Capital, HM Venture Partners, ReliantTech, Maxpro Ventures, and existing shareholders to fund pivotal Phase 3 development. Enrollment in two Phase 3 trials was completed earlier in 2025, with topline data expected in Q2 2026 ahead of regulatory filings. Pozdeutinurad has shown promising Phase 2 results, including encouraging efficacy and safety versus standard of care and complete tophi resolution in a Phase 2b study, positioning it as a potentially best-in-class therapy for uncontrolled gout. The Series E follows a $75 million Series D two years prior and provides runway through Phase 3 execution. Guangzhou-based ApicHope Pharmaceutical holds rights to pozdeutinurad in Greater China. On December 15, 2025, Swedish pharma Sobi announced a definitive agreement to acquire Arthrosi for $950 million upfront cash (about SEK 9.1 billion) plus up to $550 million in milestones tied to clinical, regulatory, and sales achievements, expected to close in H1 2026. The deal, funded via debt, targets expansion of Sobi's gout pipeline with this differentiated asset, projected to accelerate growth into the mid-2030s. Sobi views pozdeutinurad as a potential therapy of choice for progressive gout unresponsive to first-line treatments. |
| Jan 2024 | Series A | - | $7M | $800M | Arthrosi Therapeutics is a late-stage biotechnology company headquartered in San Diego, California, founded in 2019, developing a potentially best-in-class, highly potent and selective next-generation URAT1 inhibitor called pozdeutinurad (AR882) to reduce serum urate levels, flares, and dissolve tophi in patients with gout and tophaceous gout. The company closed a $153 million Series E financing round on October 8, 2025, at an $800 million valuation, led by Prime Eight Capital Limited with participation from CR Biotech, HighLight Capital, HM Venture Partners, ReliantTech Limited, and existing shareholders including New Enterprise Associates and RA Capital. An initial filing of $60.9 million was reported on June 24, 2025. Proceeds will fund completion of pivotal development, including two fully enrolled Phase 3 trials (REDUCE 1 and REDUCE 2), with data expected in Q2 2026, and support product development, team expansion, and global operations scaling. Arthrosi positions itself in the biotech sector targeting unmet needs in gout treatment, demonstrating strong investor confidence through this round following a $75 million Series D. The company has over 120 employees and aims to file for approval after 2026 data readout. |
| Jul 2023 | Series D | Guangrun Health Industry (lead); Reichstein Biotech | $75M | - | Arthrosi Therapeutics, a San Diego-based clinical-stage biotechnology company founded in 2018, develops AR882 (pozdeutinurad), a next-generation URAT1 inhibitor aimed at reducing serum urate levels, flares, and tophi in gout and tophaceous gout patients, addressing unmet needs in a market affecting 9 million U.S. patients with potential over $1 billion in value. The company has shown promising Phase 2b results with industry-leading efficacy and safety, positioning AR882 as a potential best-in-class treatment superior to standard options. On July 11-12, 2023, Arthrosi secured $75 million in Series D financing led by Guangrun Health Industry (Hong Kong) Co. Limited, with participation from Reichstein Biotech (a subsidiary of ApicHope Pharmaceuticals) and other undisclosed investors. This round supports accelerated development of AR882 in Western countries and Asia, building on prior collaborations like a 2021 joint venture with Ruiao Biopharmaceutical (another ApicHope subsidiary) for greater China development, involving $34.3 million investment and $25 million in Series C equity. Prior to Series D, Arthrosi had raised an estimated total of up to $154 million since inception, though details of earlier rounds like Series C were not fully disclosed. The funding strengthens Arthrosi's gout program amid limited treatment options, with ongoing Phase 2 tophi trials expected to demonstrate further improvements in flares, serum urate reduction, and tophi resolution. Subsequently, Arthrosi raised $153 million in a Series E round in October 2025 led by Prime Eight Capital, with participation from CR Biotech, HighLight Capital, HM Venture Partners, ReliantTech, and existing shareholders, to complete pivotal Phase 3 development of pozdeutinurad. Cumulative funding reached approximately $288-294 million across 10 rounds before an acquisition on December 13, 2025. The company, founded by gout experts from Ardea Biosciences (acquired by AstraZeneca for $1.26 billion), employs around 15-120 staff and focuses on gout and oncology therapeutics. |
| Mar 2023 | Series A | - | $15M | $800M | - |
| Oct 2021 | Series C | Viva Ventures Biotech Fund (lead) | $14M | - | - |
| Oct 2020 | Series C | - | $9M | - | - |
| Jun 2018 | Seed | - | $4M | - | Arthrosi Therapeutics was founded in 2018 as a San Diego-based biotechnology company developing treatments for gout and tophaceous gout. The company's lead drug candidate, pozdeutinurad (AR882), is a next-generation URAT1 inhibitor designed to reduce serum uric acid levels, flares, and dissolve tophi in gout patients. Available funding information begins with a $75 million Series D round led by Guangrun Health Industry. Most recently, the company closed a $153 million Series E financing in October 2025 led by Prime Eight Capital with participation from CR Biotech, HighLight Capital, HM Venture Partners, and ReliantTech Limited. In February 2026, Swedish pharmaceutical company Sobi announced an acquisition of Arthrosi for $950 million upfront plus up to $550 million in milestone-based payments, with the deal expected to close in the first half of 2026. At the time of the Series E round, both Phase 3 trials (REDUCE 1 and REDUCE 2) were fully enrolled with pivotal data expected in Q2 2026. |
| Apr 2017 | Series A | Xiamen Changrong Investment Management; Viva BioInnovator | $300K | $4M | - |
Who has invested in Arthrosi Therapeutics?
11 investors have backed Arthrosi Therapeutics across its funding rounds, including Highlight Capital, Viva BioInnovator, Viva Ventures Biotech Fund, Xiamen Changrong Investment Management, Maxpro Ventures and HM Venture Partners.
Lead investors include Prime Eight Capital, Guangrun Health Industry and Viva Ventures Biotech Fund.
Arthrosi Therapeutics Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 1 | Lead | Jun 2025 | ||
| 1 | Participant | Jun 2025 | ||
| 1 | Participant | Jul 2023 | ||
| 1 | Participant | Jun 2025 | ||
| 1 | Participant | Jun 2025 | ||
| 1 | Lead | Jul 2023 | ||
| 1 | Participant | Jun 2025 | ||
| 1 | Participant | Apr 2017 | ||
| 1 | Participant | Jun 2025 | ||
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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.
Start Free TrialArthrosi Therapeutics Competitors
Arthrosi Therapeutics competitors include listed companies like Zhejiang Wolwo Bio-Pharma, Lotus Pharmaceutical and Bicara Therapeutics, and private ones like Anew Labs, Kardigan and Verdiva Bio.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | - | - | $1.5B | - | ||
| Private | - | - | $1.5B | - | ||
| Private | - | - | $1.5B | - | ||
| Publicly listed | $158M | $69M | $1.5B | 8.5x | ||
| Publicly listed | $644M | $252M | $1.5B | 3.2x | ||
| Publicly listed | - | ($155M) | $1.5B | - |
Arthrosi Therapeutics Public Comps
Arthrosi Therapeutics is no longer listed, but its public comps include Zhejiang Wolwo Bio-Pharma, Lotus Pharmaceutical, Bicara Therapeutics, Pharma Mar, Nippon Shinyaku, Xeris Biopharma, Marksans Pharma, Avalyn Pharma, Innoviva and Natco Pharma.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $158M | $69M | 8.3x | 8.5x | 19.0x | - | |||
| $644M | $252M | 4.9x | 3.2x | 12.4x | 8.9x | |||
| - | ($155M) | - | - | (6.4x) | (5.4x) | |||
| $255M | $77M | 5.3x | 5.5x | 17.5x | 27.5x | |||
| $1.1B | $271M | 1.0x | 0.9x | 3.9x | 3.9x | |||
| $292M | $38M | 5.7x | 4.6x | 44.1x | 28.2x | |||
| $307M | $68M | 4.7x | 4.3x | 21.2x | 20.2x | |||
| - | ($91M) | - | - | (12.5x) | (10.1x) | |||
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Common questions about Arthrosi Therapeutics
| When was Arthrosi Therapeutics founded? | Arthrosi Therapeutics was founded in 2017. |
| Where is Arthrosi Therapeutics headquartered? | Arthrosi Therapeutics is headquartered in Los Angeles, CA, United States. |
| Is Arthrosi Therapeutics publicly listed? | No, Arthrosi Therapeutics was acquired by Sobi in December 2025. |
| Who acquired Arthrosi Therapeutics? | Arthrosi Therapeutics was acquired by Sobi in December 2025. |
| How much was Arthrosi Therapeutics acquired for? | Arthrosi Therapeutics was acquired for $1.5B in December 2025. |
| What is Arthrosi Therapeutics' valuation? | Arthrosi Therapeutics was last valued at $800M in its Series A in January 2024. |
| How much funding has Arthrosi Therapeutics raised? | Arthrosi Therapeutics has raised $277M across 8 funding rounds. |
| What was Arthrosi Therapeutics' last funding round? | Arthrosi Therapeutics' last funding round was a $153M Series E in June 2025, led by Prime Eight Capital. |
| Who are Arthrosi Therapeutics' investors? | Arthrosi Therapeutics' investors include Prime Eight Capital, HM Venture Partners, Reichstein Biotech, Maxpro Ventures, Highlight Capital, Guangrun Health Industry, CR Biotech, Xiamen Changrong Investment Management, ReliantTech, Viva Ventures Biotech Fund and 1 other. |
| Which companies are comparable to Arthrosi Therapeutics? | Companies comparable to Arthrosi Therapeutics include Anew Labs, Kardigan, Verdiva Bio, Zhejiang Wolwo Bio-Pharma, Lotus Pharmaceutical and Bicara Therapeutics. |
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