ZyVersa secures $12 million in financing to advance kidney disease trials

WESTON, Fla. - ZyVersa Therapeutics (Nasdaq:ZVSA), currently valued at $0.7 million in market capitalization, has secured $12 million in financing to advance its research and development programs for kidney and inflammatory diseases, the clinical stage biopharmaceutical company announced Monday. According to InvestingPro data, the company’s financial health score stands at 1.74, indicating significant challenges ahead.

The financing includes a $2 million warrant inducement transaction from a current investor closed on July 8, and a Share Purchase Agreement for up to $10 million in partnership with Williamsburg Venture Holdings closed on June 25. With a current ratio of 0.18, InvestingPro analysis shows the company’s short-term obligations exceed its liquid assets, making this financing crucial for operations.

ZyVersa is currently conducting a Phase 2a trial in patients with diabetic kidney disease (DKD) for its lead drug candidate VAR 200, which targets lipid accumulation in the kidney’s filtration system. The company initiated the trial in mid-June 2025 and expects preliminary data in the fourth quarter of 2025, with final results anticipated in the first half of 2026.

The company is also preparing to initiate an IND-enabling preclinical study for its inflammasome ASC inhibitor IC 100 in a diet-induced obesity animal model in the third quarter of 2025. IC 100 is being developed for obesity with cardiometabolic comorbidities, with potential expansion into neurological diseases.

ZyVersa began trading on the OTC Market on July 17, 2025, under the same ticker symbol ZVSA, according to the company’s statement.

"Our pipeline is advancing. Our science is differentiated," said Stephen C. Glover, Co-Founder, Chairman, Chief Executive Officer, and President of ZyVersa, in a shareholder letter released by the company.

The company noted that kidney disease affects over 850 million people globally and consumes approximately 25% of Medicare spending in the US, amounting to over $130 billion annually.

The information in this article is based on a press release statement from ZyVersa Therapeutics. The stock currently trades near its 52-week low of $0.14, having declined 96.34% over the past year. InvestingPro subscribers have access to 15+ additional insights about ZVSA, including detailed financial health metrics and growth projections.

In other recent news, ZyVersa Therapeutics has faced several significant developments. The company announced that it would be delisted from the Nasdaq Capital Market due to noncompliance with the minimum bid price requirement. Consequently, ZyVersa plans to move its trading to the OTC market. In a positive development, ZyVersa’s investigational drug VAR 200 received FDA authorization for Emergency Compassionate Use in a patient with an ultra-rare kidney condition, ApoCII amyloidosis. Additionally, ZyVersa has begun patient recruitment for a Phase 2a study of VAR 200 for diabetic kidney disease, with the Clinical Advancement Center in Texas leading the trial.

The company also entered into a $10 million share purchase agreement with Williamsburg Venture Holdings, which will help fund the development of its kidney disease treatments. Furthermore, ZyVersa announced promising study results for its Inflammasome ASC Inhibitor IC 100, indicating potential as a disease-modifying therapy for Parkinson’s Disease. The study was conducted at the University of Miami and funded by the Michael J. Fox Foundation. These recent developments reflect ZyVersa’s ongoing efforts in advancing its therapeutic programs for kidney and neurodegenerative diseases.

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