Bayer Secures $1.3B Deal with Kumquat Biosciences for KRAS G12D Inhibitor

In a significant move to bolster its oncology portfolio, Bayer has entered into a potential $1.3 billion collaboration with San Diego-based Kumquat Biosciences. The deal, announced on Tuesday, centers around Kumquat's small-molecule KRAS G12D inhibitor, which recently received FDA clearance to begin clinical studies.

Deal Structure and Financial Terms

The agreement encompasses an undisclosed upfront payment, along with clinical and commercial milestones totaling up to $1.3 billion. Kumquat will also be eligible for tiered royalties on net sales if the drug reaches the market. Under the terms of the deal, Kumquat will be responsible for conducting the Phase Ia clinical trial, after which Bayer will take charge of further clinical development, regulatory activities, and commercialization.

Juergen Eckhardt, head of Business Development and Licensing at Bayer's Pharmaceuticals Division, stated that the partnership will allow Bayer to "explore ... a potential new treatment option" for cancer patients while complementing its existing oncology portfolio.

KRAS G12D: A Promising Oncology Target

KRAS G12D is a mutation found in approximately 38% of pancreatic cancer patients and 4% of non-small cell lung cancer (NSCLC) patients. The development of KRAS inhibitors has gained momentum in recent years, following breakthroughs in targeting the KRAS G12C mutation by companies like Amgen and Mirati Therapeutics.

Kumquat's KRAS G12D inhibitor joins a competitive field, with several pharmaceutical companies pursuing similar targets. Revolution Medicines is currently leading the race with its candidate zoldonrasib, which demonstrated an objective response rate of 61% in 18 evaluable patients during Phase I trials. Revolution is considering advancing zoldonrasib into pivotal development next year.

Implications for Bayer's Oncology Pipeline

This collaboration significantly enhances Bayer's position in the precision oncology space. The company's current oncology portfolio is anchored by Nubeqa (darolutamide), an androgen receptor blocker approved for prostate cancer, and sevabertinib, which is under FDA priority review for HER2-mutant NSCLC.

The addition of Kumquat's KRAS G12D inhibitor aligns with Bayer's strategy to expand its presence in targeted cancer therapies. As the pharmaceutical landscape continues to evolve, this deal positions Bayer to compete more effectively in the rapidly advancing field of KRAS inhibition.