SEATTLE, Dec. 19, 2022 (GLOBE NEWSWIRE) — Kineta, Inc., a clinical-stage biotechnology company focused on developing next-generation immunotherapies to address cancer immune resistance, announced today the completion of its reverse merger with Yumanity Therapeutics, Inc. The combined company will operate under the name Kineta, Inc. and its shares will commence trading on The Nasdaq Capital Market under the ticker symbol “KA” on December 19, 2022. Immediately prior to the merger, Yumanity effected a reverse stock split of its common stock at a ratio of one share for every seven shares.
Concurrently with the closing of the reverse merger, Kineta completed a $7.5 million PIPE financing priced at $11.55 per share. An additional $22.5 million PIPE financing is expected to close on March 31, 2023 subject to the terms of the securities purchase agreement. The aggregate amount of $30 million from the PIPE financing in addition to $7.8 million in net cash remaining in Yumanity at the closing of the merger is expected to provide the combined company with a runway through mid-2024.
Kineta plans to execute on its clinical development program to unlock the potential of KVA12123. KVA12123 is expected to be a differentiated VISTA blocking immunotherapy to address the problem of immunosuppression in the tumor microenvironment. A Phase 1 / Phase 2 clinical trial evaluating KVA12123 alone and in combination with pembrolizumab in patients with advanced solid tumors will begin enrolling patients in January 2023. Additionally, the Company is advancing an anti-CD27 agonist immunotherapy to address the problem of exhausted T cells and is planning to submit an Investigational New Drug application (IND) in the first half of 2024.
“Closing the reverse merger with Yumanity and the PIPE financing round provides Kineta with the capital necessary to advance our lead program, KVA12123, into clinical development in cancer patients,” said Shawn Iadonato, Ph.D., Chief Executive Officer of Kineta. “We remain on track to report interim safety and efficacy data for KVA12123 in patients with advanced solid tumors in late 2023. We greatly appreciate the support of our investors as we continue to deliver on our mission of developing next-generation immunotherapies that transform patients’ lives.”
The management team of Kineta has become the management team of the combined company, led by Dr. Shawn Iadonato (Chief Executive Officer), Craig Philips (President), Keith Baker (Chief Financial Officer), Dr. Thierry Guillaudeux (Chief Scientific Officer), Pauline Kenny (General Counsel) and Jacques Bouchy (EVP Investor Relations & Business Development). The Board of Directors of the combined company has five directors, comprised of Shawn Iadonato, Raymond Bartoszek and Marion Foote, former members of the pre-combination Kineta Board of Directors, and Dr. Richard Peters and David Arkowitz, former members of the Yumanity Board of Directors.
H.C. Wainwright & Co., LLC served as advisor to Kineta for the merger and Orrick, Herrington and Sutcliffe LLP served as legal counsel to Kineta for the merger transaction and the PIPE financing. Goodwin Procter LLP served as legal counsel to Yumanity for the merger transaction.
About Kineta
Kineta is a clinical-stage biotechnology company with a mission to develop next-generation immunotherapies that transform patients’ lives. Kineta has leveraged its expertise in innate immunity and is focused on discovering and developing potentially differentiated immunotherapies that address the major challenges with current cancer therapy. For more information on Kineta, please visit www.kinetabio.com, and follow Kineta on Twitter, LinkedIn and Facebook.
KVA12123 (formerly referred to as KVA12.1) is expected to be a differentiated VISTA blocking immunotherapy to address the problem of immunosuppression in the tumor microenvironment. It is a fully human engineered IgG1 monoclonal antibody that was designed to bind to VISTA through a unique epitope. KVA12123 may be an effective immunotherapy for many types of cancer including NSCLC (lung), colorectal, renal cell carcinoma, head and neck, and ovarian. These initial target indications represent a significant unmet medical need with a large worldwide commercial opportunity for KVA12123.
