TuHURA Biosciences completes acquisition of Kineta, adds VISTA inhibitor

Published 30/06/2025, 14:00
TuHURA Biosciences completes acquisition of Kineta, adds VISTA inhibitor

TAMPA - TuHURA Biosciences, Inc. (NASDAQ:HURA), a clinical-stage biotech with a market capitalization of $97 million, announced Monday the completion of its acquisition of Kineta, Inc. (OTCPK:KANT), adding a Phase 2 ready VISTA inhibiting monoclonal antibody to its immuno-oncology pipeline. According to InvestingPro data, TuHURA maintains a healthy liquidity position with a current ratio of 3.0, though the company is experiencing rapid cash burn.

The acquired drug candidate, formerly known as KVA12123 and now renamed TBS-2025, targets the VISTA immune checkpoint that is highly expressed on myeloid cells in the tumor microenvironment.

Under the terms of the merger agreement, each share of Kineta common stock was converted into 0.185298 shares of TuHURA common stock, resulting in an issuance of approximately 2.87 million TuHURA shares. Additional consideration includes potential future share issuances and cash payments related to legacy Kineta assets.

TuHURA plans to initiate a Phase 2 randomized trial with TBS-2025 in combination with a menin inhibitor for NPM1 mutated acute myeloid leukemia (AML) in the second half of 2025.

"The acquisition expands TuHURA’s pipeline with a Phase 2 ready drug candidate which has the potential to overcome acquired resistance to cancer immunotherapy," said James Bianco, President and CEO of TuHURA, in the company’s press release.

The VISTA inhibitor has already completed a Phase 1/2 trial where it demonstrated tolerability at doses up to 1,000mg, both as monotherapy and in combination with pembrolizumab in patients with advanced solid tumors. The development comes as TuHURA’s stock has declined 45% over the past six months, trading significantly below its 52-week high of $7.93. InvestingPro subscribers can access 12 additional key insights about TuHURA’s financial health and market position.

The acquisition completion unlocks the fourth tranche of funds from a $12.5 million aggregate PIPE financing that TuHURA announced on June 3, 2025.

Leerink Partners served as the exclusive financial advisor to TuHURA on the transaction. Despite current market challenges, analysts maintain optimistic price targets ranging from $9.25 to $15.00, suggesting potential upside from current levels. For comprehensive analysis and valuation metrics, visit InvestingPro.

In other recent news, TuHURA Biosciences announced the initiation of a Phase 3 trial for its lead drug candidate, IFx-2.0, in patients with advanced or metastatic Merkel cell carcinoma. This trial is conducted under a Special Protocol Assessment agreement with the FDA and aims to evaluate the drug as an adjunctive therapy alongside Keytruda. The trial will enroll 118 participants across approximately 22 U.S. sites, with the primary endpoint being the Overall Response Rate. Additionally, TuHURA and Kineta stockholders have approved all proposals related to their planned merger, with the companies aiming to complete the merger soon. Analyst firm H.C. Wainwright has reiterated a Buy rating with a $12 target for TuHURA, while Brookline Capital Markets initiated coverage with a Buy rating and a $9 target. The merger with Kineta is expected to expand TuHURA’s pipeline, adding a VISTA-blocking monoclonal antibody. Furthermore, TuHURA has announced salary increases for its CEO and CFO, aligning with compensation trends within its peer group. These developments reflect TuHURA’s ongoing efforts in advancing its clinical programs and corporate strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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