Kura Oncology Announces Oversubscribed $150 Million Private Placement
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Insights
The private placement conducted by Kura Oncology represents a significant capital infusion, which is indicative of strong investor confidence. The premium pricing of the shares at approximately 29% above the closing price suggests a bullish outlook on the company's prospects, particularly in relation to its precision medicine approach in oncology. The pro forma cash position, which is expected to provide a runway into 2027, indicates a robust financial strategy that minimizes the need for near-term additional funding, thereby reducing dilution risk for current shareholders.
From a financial perspective, the transaction's structure, involving both common stock and pre-funded warrants, provides flexibility in capital management. The nominal exercise price of the pre-funded warrants effectively makes them the equivalent of additional common stock, assuming they will be exercised. This could potentially lead to an increase in the company's outstanding shares, thus impacting the earnings per share (EPS) metric in the future.
Investors and analysts should monitor the deployment of these funds towards the company's pipeline development, particularly the preliminary combination data for ziftomenib. The success of this drug candidate could have a material impact on the company's valuation and future revenue streams.
Ziftomenib, which is likely a focal point of Kura Oncology's pipeline, represents a key asset in the precision medicine space. The anticipation of preliminary combination data suggests that the company is progressing towards critical milestones in its clinical development pathway. The impact of these results on the company's valuation cannot be overstated, as positive data could lead to increased interest from larger pharmaceutical companies for partnerships or even acquisition.
The oncology market is highly competitive and the success of new treatments depends on their efficacy and safety profile compared to existing therapies. Precision medicine approaches aim to tailor treatments to individual genetic profiles, which could offer significant advantages in terms of patient outcomes and cost-effectiveness. If ziftomenib's data is positive, it could position Kura Oncology as a leader in a niche market of targeted cancer therapies.
The biopharmaceutical sector, particularly companies specializing in oncology, is subject to intense investor scrutiny due to the high risks and rewards associated with drug development. Kura Oncology's successful capital raise in an oversubscribed private placement signals market confidence and provides the company with the necessary resources to continue its research and development efforts. This event is likely to be closely watched by competitors and market analysts, as it reflects both the company's individual strengths and broader market trends towards investment in precision medicine.
The long-term runway provided by this funding suggests that Kura Oncology is not expected to seek additional funding in the near future, which could stabilize its stock price and make it a more attractive investment. However, the actual impact on the stock market will depend on the subsequent utilization of the funds and the outcomes of the clinical trials for ziftomenib. The investor event may provide further insights into the company's strategic direction and should be of interest to stakeholders looking to gauge the potential impact on the company's market position.
– Funding from existing investors, including EcoR1 Capital, an affiliate of Deerfield Management and Suvretta Capital –
– Pro forma cash, cash equivalents and investments expected to provide runway into 2027 –
– Management to host virtual investor event at 8:00 a.m. ET on January 30 to highlight preliminary combination data for ziftomenib –
SAN DIEGO, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Kura Oncology, Inc. (Nasdaq: KURA), a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer, today announced that it has agreed to sell 1,376,813 shares of its common stock at a price of
The financing includes participation from existing institutional investors, including EcoR1 Capital, an affiliate of Deerfield Management and Suvretta Capital. Leerink Partners acted as the sole placement agent for the private placement.
Kura intends to use the net proceeds from the proposed financing to fund research and development of its clinical-stage product candidates, other research programs, working capital and general corporate purposes. The proceeds from this financing, combined with current cash, cash equivalents and investments, are expected to fund current operations into 2027.
The securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. Kura has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) registering the resale of the shares of common stock issued in the private placement and the shares of common stock issuable upon the exercise of the pre-funded warrants issued in the private placement no later than the 30th day after the pricing of the private placement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.
Virtual Investor Event
Kura will host a virtual investor event featuring company management and investigators from the KOMET-007 trial of ziftomenib in combination with standards of care at 8:00 a.m. ET on Tuesday, January 30, 2024. The event will be webcast live and can be accessed on the Investors section of Kura’s website at www.kuraoncology.com. An archived replay will be available shortly after the conclusion of the live event.
About Kura Oncology
Kura Oncology is a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer. The Company’s pipeline consists of small molecule drug candidates that target cancer signaling pathways. Ziftomenib is a once-daily, oral drug candidate targeting the menin-KMT2A protein-protein interaction for the treatment of genetically defined acute myeloid leukemia (AML) patients with high unmet need. Kura is currently enrolling patients in a Phase 2 registration-directed trial of ziftomenib in NPM1-mutant relapsed or refractory AML (KOMET-001). The Company is also conducting a series of studies to evaluate ziftomenib in combination with current standards of care, beginning with venetoclax and azacitidine and 7+3 in NPM1-mutant and KMT2A-rearranged newly diagnosed and relapsed/refractory AML (KOMET-007). Tipifarnib, a potent and selective farnesyl transferase inhibitor (FTI), is currently in a Phase 1/2 trial in combination with alpelisib for patients with PIK3CA-dependent head and neck squamous cell carcinoma (KURRENT-HN). Kura is also evaluating KO-2806, a next-generation FTI, in a Phase 1 dose-escalation trial as a monotherapy and in combination with cabozantinib in clear cell renal cell carcinoma and adagrasib in KRASG12C-mutated non-small cell lung cancer (FIT-001).
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements about Kura’s expectations regarding the completion, timing and size of the private placement, its cash runway, the intended use of the net proceeds, the filing and timing of a resale registration statement and its plans regarding future clinical trials. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Kura’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks associated with market conditions and the satisfaction of closing conditions related to the private placement, risks associated with Kura’s cash needs, risks and uncertainties associated with Kura’s business and finances in general, and the other risks described in Kura’s quarterly report on Form 10-Q for the quarterly period ended September 30, 2023 and other filings with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Kura undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Contacts
Investors:
Pete De Spain
Executive Vice President, Investor Relations &
Corporate Communications
(858) 500-8833
pete@kuraoncology.com
Media:
Alexandra Weingarten
Associate Director, Investor Relations &
Corporate Communications
(858) 500-8822
alexandra@kuraoncology.com
FAQ
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