TAMPA, FL and SAN DIEGO, CA - TuHURA Biosciences, Inc. has entered into an exclusivity agreement with Kineta, Inc. for the potential acquisition of an advanced immunotherapy asset, KVA12123, an anti-VISTA antibody currently in clinical trials. The deal includes a $5 million investment from an existing TuHURA shareholder, bolstering the company's financial position as it advances its Phase 3 trial for another cancer treatment.
KVA12123 is designed to target VISTA, a protein that suppresses T-cell activation and is overexpressed in certain tumors resistant to current therapies. The drug has shown promise in early clinical studies without inducing Cytokine Release Syndrome, a common side effect of similar treatments. TuHURA's CEO, Dr. James Bianco, noted the potential of KVA12123 to complement their existing technologies and address a new target in cancer immunotherapy.
Under the terms of the agreement, TuHURA will pay Kineta $5 million in two installments, with the exclusivity period lasting 90 days, extendable by another 20 days. This strategic move comes as TuHURA is set to merge with Kintara Therapeutics, Inc. to form a combined entity under the name TuHURA Biosciences, Inc., expected to trade on The Nasdaq Capital Market under the ticker "HURA".
The merger, subject to customary closing conditions including stockholder approval, aims to consolidate resources and expertise to advance a diversified late-stage oncology pipeline. TuHURA is preparing for a Phase 3 trial of its personalized cancer vaccine candidate, IFx-2.0, and developing bi-functional Antibody Drug Conjugates targeting immune suppression in the tumor microenvironment.
Craig W. Philips, President of Kineta, expressed confidence in TuHURA's ability to further develop KVA12123, potentially offering a new treatment option for cancer patients. This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, TuHURA Biosciences announced positive outcomes from a Phase 1b trial of its leading cancer vaccine candidate, IFx-2.0. The trial, conducted in collaboration with Kintara Therapeutics, involved patients with advanced Merkel Cell Carcinoma (MCC) or Cutaneous Squamous Cell Carcinoma (cSCC) who had not responded to standard immune checkpoint inhibitor therapies. The study revealed that IFx-2.0 was well-tolerated and 80% of the patients who had previously not responded to certain therapies achieved a substantial response after treatment with IFx-2.0.
The encouraging results have paved the way for a planned Phase 3 registration-directed clinical trial, set to commence in the latter half of 2024. The upcoming trial will test IFx-2.0 as an adjunctive therapy with Keytruda® to enhance tumor response rates.
In other developments, TuHURA is preparing to merge with Kintara in an all-stock transaction, aiming to form a combined company with a diversified late-stage oncology pipeline. The merger is anticipated to be finalized in the third quarter of 2024, subject to customary closing conditions, including approval from both companies' stockholders. These are some of the recent developments in TuHURA Biosciences.
InvestingPro Insights
As TuHURA Biosciences embarks on a strategic merger with Kineta, Inc. and advances its oncology pipeline, it's essential to consider the financial health and market performance of the companies involved. Kineta, Inc., trading under the ticker KTRA, presents a mixed financial picture that investors should be aware of. With a market capitalization of $16.59 million, Kineta's size is relatively modest in the biotechnology space. The company's financial data reveals a challenging operational landscape, with an operating income adjusted for the last twelve months as of Q3 2024 standing at a loss of $9.41 million.
Despite recent market performance showing a strong return over the last three months with a price total return of 123.05%, Kineta's long-term price performance has seen significant declines, with a 1-year price total return at -94.0%. This volatility in share price reflects the inherent risks of investing in biotech firms working on groundbreaking but unproven therapies. On the upside, Kineta holds more cash than debt on its balance sheet, which is a positive sign for its financial stability, and its liquid assets exceed short-term obligations, suggesting the company can meet its immediate financial liabilities.
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While Kineta does not pay a dividend, indicating a reinvestment of earnings into research and development, the company's quick cash burn and weak gross profit margins are areas of concern. Analysts also do not anticipate Kineta to be profitable this year, which is a critical consideration for investors evaluating the potential acquisition by TuHURA Biosciences. With these financial dynamics at play, the merger and the development of the KVA12123 asset become all the more pivotal for the future prospects of both companies.
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