Kura Oncology Announces Financing Transactions with Bristol Myers Squibb and Hercules Capital, Providing Access to up to $150 Million
November 03 2022 - 7:00AM
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 a
$25 million equity investment from Bristol Myers Squibb (NYSE: BMY)
and a term loan facility with access to up to $125 million from
Hercules Capital, Inc. (NYSE: HTGC). If the term loan is fully
drawn, proceeds from these two transactions together with existing
cash are expected to fund Kura’s current operating plan into 2026.
“Bristol Myers Squibb has deep expertise and history in
advancing transformational cancer treatments,” said Troy Wilson,
Ph.D., J.D., President and Chief Executive Officer of Kura
Oncology. “This equity investment strengthens the relationship
between our organizations and enables Bristol Myers Squibb to
provide valuable strategic input into our global development
strategy. We are honored and excited to have their support and look
forward to their input as we work to deliver innovative science
with the potential to benefit patients.”
“In addition, we are grateful for the support of Hercules
Capital, a company with a long history of investing in innovative
biotechnology companies,” Dr. Wilson continued. “Together, these
transactions augment our already strong balance sheet and give us
significant financial strength and flexibility as we prepare to
advance into the registration-enabling portion of KOMET-001 for
ziftomenib, initiate multiple combination studies for ziftomenib in
earlier lines of acute myeloid leukemia and continue to expand and
invest in our farnesyl transferase inhibitor programs.”
Kura has agreed to sell 1,370,171 shares to Bristol Myers Squibb
at a price of $18.25 per share for gross proceeds of $25 million.
The shares of common stock were offered and sold to Bristol Myers
Squibb in a registered direct offering. In connection with the
equity investment, Bristol Myers Squibb will appoint a member to
Kura’s Global Steering Committee. Kura will maintain full ownership
and control of its programs and operations.
Under the terms of the loan agreement with Hercules Capital, $10
million will be drawn immediately after closing and an additional
$15 million is immediately available to Kura at its sole
discretion. Kura may draw an additional $75 million in two separate
tranches upon achievement of near-term clinical milestones. An
additional $25 million may be drawn in a fourth tranche, subject to
the approval of Hercules Capital. The loan bears an initial
interest rate of 8.65% and adjusts with future changes in the prime
rate. Kura will pay interest only for the first 24 months,
extendable to up to 48 months on achievement of certain milestones.
The loan matures 60 months from closing in November 2027.
“Hercules is pleased to enter into a strategic relationship with
Kura as it advances its promising clinical-stage programs,” said
Lake McGuire, Managing Director at Hercules Capital. “This capital
commitment from Hercules aims to help Kura deliver new treatment
options to patients suffering from AML and other cancers and
reflects our dedication to provide customized financing solutions
to growth-stage life science companies.”
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 sale of these securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
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 (KO-539), a potent and selective menin inhibitor, is
currently in a Phase 1b clinical trial (KOMET-001) for patients
with relapsed/refractory acute myeloid leukemia, including patients
with NPM1 mutations or KMT2A rearrangements. Tipifarnib, a potent,
selective and orally bioavailable farnesyl transferase inhibitor
(FTI), has received Breakthrough Therapy Designation for the
treatment of patients with HRAS mutant HNSCC. Kura is conducting a
Phase 1/2 trial (KURRENT-HN) of tipifarnib in combination with the
PI3Kα inhibitor alpelisib to address larger genetic subsets of
HNSCC patients, including those whose tumors are dependent on HRAS
and/or PI3Kα pathways. The Company has also initiated a Phase 1
trial (KURRENT-LUNG) of tipifarnib in combination with osimertinib
in treatment-naïve, locally advanced/metastatic, EGFR mutant
non-small cell lung cancer. Kura intends to perform initial
clinical evaluation with tipifarnib while in parallel advancing
KO-2806, the Company’s next-generation FTI, through IND-enabling
studies. For additional information, please visit Kura’s website at
www.kuraoncology.com.
Forward-Looking Statements
This news release contains certain forward-looking statements
that involve risks and uncertainties that could cause actual
results to be materially different from historical results or from
any future results expressed or implied by such forward-looking
statements. Such forward-looking statements include statements
regarding, among other things, the efficacy, safety and therapeutic
potential of ziftomenib or farnesyl transferase inhibitors,
progress and expected timing of the ziftomenib or farnesyl
transferase inhibitor programs and clinical trials, and the
strength of Kura’s balance sheet and the adequacy of cash on hand.
Factors that may cause actual results to differ materially include
the risk that compounds that appeared promising in early research
or clinical trials do not demonstrate safety and/or efficacy in
later preclinical studies or clinical trials, the risk that Kura
may not obtain approval to market its product candidates,
uncertainties associated with performing clinical trials,
regulatory filings, applications and other interactions with
regulatory bodies, risks associated with reliance on third parties
to successfully conduct clinical trials, the risks associated with
reliance on outside financing to meet capital requirements, and
other risks associated with the process of discovering, developing
and commercializing drugs that are safe and effective for use as
human therapeutics, and in the endeavor of building a business
around such drugs. You are urged to consider statements that
include the words “may,” “will,” “would,” “could,” “should,”
“believes,” “estimates,” “projects,” “promise,” “potential,”
“expects,” “plans,” “anticipates,” “intends,” “continues,”
“designed,” “goal,” or the negative of those words or other
comparable words to be uncertain and forward-looking. For a further
list and description of the risks and uncertainties the Company
faces, please refer to the Company's periodic and other filings
with the Securities and Exchange Commission (SEC), including the
Company’s Form 10-Q for the quarter ended September 30, 2022 filed
with the SEC on November 3, 2022, which are available at
www.sec.gov. Such forward-looking statements are current only as of
the date they are made, and Kura assumes no obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contacts
Company:Pete De SpainSenior Vice President,
Investor Relations &Corporate Communications(858)
500-8803pete@kuraoncology.com
Investors:Robert H. UhlManaging
DirectorWestwicke ICR(858) 356-5932robert.uhl@westwicke.com
Media:Jason SparkManaging DirectorEvoke
Canale(619) 849-6005jason.spark@evokegroup.com
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