Kineta Streamlines Portfolio Ahead of TuHURA Merger with Strategic Deals

Kineta, a biotechnology company, has made significant moves to restructure its portfolio in preparation for its upcoming merger with TuHURA Biosciences. The company has entered into multiple agreements to divest assets and partnerships, signaling a strategic shift in its business focus.

Genentech and Merck Deals Transferred to Investment Firm

In a notable transaction, Kineta has agreed to sell its licensing deals with pharmaceutical giants Genentech and Merck & Co. to HCRX Investments Holdco, a subsidiary of HealthCare Royalty Partners. The Genentech collaboration, initiated in 2018 with a $5 million upfront payment, focused on small molecule modulators and included potential milestone payments of up to $96 million. This partnership was extended in 2020 to support early-phase development of a pain prospect.

The Merck deal, which Kineta acquired through its 2022 merger with Yumanity Therapeutics, involves preclinical drug candidates for amyotrophic lateral sclerosis (ALS) and frontotemporal lobar dementia. Kineta received a $5 million milestone payment from Merck in 2023, with up to $255 million in additional payments still possible.

Asset Divestments and Partnership Terminations

As part of its portfolio restructuring, Kineta has made several other strategic moves:

1. The company has agreed to sell its pain prospect KCP506, a nicotinic acetylcholine receptor antagonist, to Pacira Pharmaceuticals for $450,000 upfront. Kineta had previously initiated a phase 2 trial for this compound in 2020.

2. Kineta has terminated its option and license agreement with GigaGen, which had granted the company rights to a CD27 drug program. This termination results in the return of all rights to GigaGen and eliminates $180,000 in fees for Kineta.

3. The deal with HCRX Investments Holdco also includes Kineta's involvement in a cystic fibrosis pact with Fair Therapeutics.

TuHURA Merger and Future Focus

These portfolio changes come in the wake of TuHURA Biosciences' agreement to acquire Kineta, announced in December. The $15 million upfront deal, which included a $5 million payment made last summer for an exclusivity agreement, is primarily motivated by TuHURA's interest in Kineta's phase 2 checkpoint inhibitor.

By divesting these assets and partnerships, Kineta appears to be streamlining its operations and focusing on its most promising programs as it prepares to integrate with TuHURA Biosciences. This strategic realignment suggests a targeted approach to drug development and resource allocation in the competitive biotechnology landscape.