Kura spins out Caspian with $50M to test

Kura Oncology has formed a new biotech company, Caspian Therapeutics, with $50 million in funding to develop a next-generation diabetes therapy. The financing was led by BVF Partners and included Eli Lilly, the T1D Fund, Invus, Montanova, and members of Kura's leadership team.

Caspian will focus on advancing KO 7246, a menin inhibitor that Kura describes as purpose-designed for chronic metabolic diseases. A portion of the $50 million will also support another menin inhibitor program for diabetes and cardiometabolic conditions. Kura will retain a 50% ownership stake in the spinout and has provided the relevant intellectual property.

The Shift from Cancer to Metabolic Disease

Menin inhibitors are a new class of drugs, with the first approvals occurring in late 2025 for treating acute myeloid leukemia. Kura's own leukemia drug, Komzifti, was approved by the FDA then. These cancer treatments work by blocking interactions between the menin protein and mutant proteins that drive leukemia.

Kura's research, however, has explored a different mechanism. The company is investigating the ability of menin inhibitors to selectively stimulate pancreatic β-cells to increase insulin production. This approach targets the root cause of diabetes rather than managing symptoms.

Preclinical Findings and Rationale

According to Kura's Chief Scientific Officer Francis Burrows, Ph.D., preclinical data has strengthened the conviction that menin inhibition can address the underlying loss of functional β-cell capacity. Burrows stated in the release, “The consistency of the findings across Type 1 and Type 2 diabetes models, together with their translation into human islet systems, provides a strong rationale to advance KO-7246 into clinical development.”

The company plans to present this supporting preclinical data at the European Association for the Study of Diabetes Annual Meeting in Milan, Italy, later this month.

Strategic Structure and Leadership

Kura CEO Troy Wilson, Ph.D., explained the rationale for the spinout, saying the emerging biology in diabetes represents an opportunity to extend the company's menin expertise beyond oncology. “By establishing Caspian with dedicated leadership and external capital, Caspian can pursue the potential of KO-7246 while Kura remains focused on executing its oncology strategy,” Wilson said.

Wilson will serve as the executive chairman of Caspian's board of directors. The $50 million in funding is intended to support KO-7246 through preclinical development and into a first-in-human clinical study.