Kura Oncology Spins Off Diabetes Drug Developer With Eli Lilly

U.S. drugmaker Kura Oncology has spun off a subsidiary to develop a menin inhibitor, previously used to treat leukemia, as a new diabetes drug.

According to BioPharma Dive on the 9th local time, Kura Oncology has established Caspian Therapeutics, a startup that will develop treatments for diabetes and other cardiometabolic diseases.

Caspian will initially focus on a drug called KO-7246. Preclinical studies found that the drug may help regenerate pancreatic beta cells and increase insulin secretion.

Two menin inhibitors have been approved in the U.S. as leukemia treatments. Applying the drug class to diabetes is a new approach.

Caspian raised $50 million (about 67 billion won). Kura Oncology participated in the financing and holds about 50% of the company, while BVF Partners, Eli Lilly and the T1D Fund also invested.

Troy Wilson, CEO of Kura Oncology and chairman of Caspian, said, “A company of our size and at our stage can’t do everything,” adding, “We needed to bring in expertise and capital.”

Blocking menin in diabetes “releases the brakes” on pancreatic beta cells, which is necessary to restore normal glucose and insulin levels, Wilson said. KO-7246 is being tested in both type 1 and type 2 diabetes.

Biomica Fusion is a competitor. It is also developing a menin inhibitor and has entered midstage trials. Wilson said Biomica has a “time advantage,” but Caspian’s drug may have a better safety profile.

Preclinical studies found that Caspian’s drug did not cause abnormal growth in other cell types. Additional data will be presented at a medical conference later this month. The company has not disclosed when it plans to begin clinical trials.

Caspian is also evaluating the potential of combining a menin inhibitor with a GLP-1 drug for patients whose blood sugar is difficult to control with existing treatments.

Phil Nadeau, an analyst at TD Cowen, said the spin-off “provides shareholders with upside potential while reducing downside risk.”