Arthrosi Therapeutics Acquisition, Valuation, Funding & Investors

Arthrosi Therapeutics was acquired by Sobi for $1.5B in December 2025.

Arthrosi Therapeutics acquisition price

$1.5B

Acquired by Sobi · Dec 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

Arthrosi Therapeutics Overview

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

United StatesLos Angeles, CA

Status

Acquired

Customer focus

B2C

Revenue model

Product sales

Valuation

$800M (Jan 2024)

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.

Arthrosi Therapeutics acquisition details
AcquirerDateTypePrice
13 Dec 2025Strategic 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

Arthrosi Therapeutics valuation by funding round
DateStageValuation
Jan 2024Series A$800M
Mar 2023Series A$800M
Apr 2017Series 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

Arthrosi Therapeutics funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Jun 2025Series EPrime 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 2024Series A-$7M$800MArthrosi 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 2023Series DGuangrun 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 2023Series A-$15M$800M-
Oct 2021Series CViva Ventures Biotech Fund (lead)$14M--
Oct 2020Series C-$9M--
Jun 2018Seed-$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 2017Series AXiamen 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

Investors in Arthrosi Therapeutics by funding rounds participated
InvestorHQRoundsRoleFirst check
Prime Eight CapitalUnited StatesSan Diego, CA1LeadJun 2025
HM Venture PartnersUnited StatesSan Francisco, CA1ParticipantJun 2025
Reichstein BiotechHong KongHong Kong1ParticipantJul 2023
Maxpro VenturesTaiwanTaiwan1ParticipantJun 2025
Highlight CapitalChinaNanjing1ParticipantJun 2025
Guangrun Health IndustryHong KongHong Kong1LeadJul 2023
CR BiotechUnited StatesSan Diego, CA1ParticipantJun 2025
Xiamen Changrong Investment ManagementChinaXiamen1ParticipantApr 2017
ReliantTechHong KongHong Kong1ParticipantJun 2025

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Arthrosi 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.

Public and private companies comparable to Arthrosi Therapeutics
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Anew LabsChinaShanghaiPrivate--$1.5B-
KardiganUnited StatesUnited StatesPrivate--$1.5B-
Verdiva BioUnited KingdomLondonPrivate--$1.5B-
Zhejiang Wolwo Bio-PharmaChinaChinaPublicly listed$158M$69M$1.5B8.5x
Lotus PharmaceuticalTaiwanTaiwanPublicly listed$644M$252M$1.5B3.2x
Bicara TherapeuticsUnited StatesUnited StatesPublicly 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 FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Zhejiang Wolwo Bio-Pharma$158M$69M8.3x8.5x19.0x-
Lotus Pharmaceutical$644M$252M4.9x3.2x12.4x8.9x
Bicara Therapeutics-($155M)--(6.4x)(5.4x)
Pharma Mar$255M$77M5.3x5.5x17.5x27.5x
Nippon Shinyaku$1.1B$271M1.0x0.9x3.9x3.9x
Xeris Biopharma$292M$38M5.7x4.6x44.1x28.2x
Marksans Pharma$307M$68M4.7x4.3x21.2x20.2x
Avalyn Pharma-($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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