KNTE - Kinnate acquires ownership stake in China joint venture Kinnjiu in $24M cash/stock deal

Kinnate Biopharma ( NASDAQ: KNTE ) said it acquired ownership stake in its China joint venture (JV) Kinnjiu Biopharma which was held by Series A investors using a combination of Kinnate shares and cash.

Kinnjiu was formed in 2021 as part of Kinnate's JV to develop and sell its most advanced kinase inhibitors in China, Hong Kong, Macau and Taiwan.

Under the transaction, Kinnate bought all issued and outstanding series A preferred shares of Kinnjiu from funds affiliated with OrbiMed and Foresite Capital Management for $24M, using cash and Kinnate common stock.

Kinnate added that it retains Kinnjiu's cash, intellectual property and other assets, including key personnel and legal entity structure.

The transaction does not impact Kinnate's cash runway, with money expected to fund current operations into mid-2024, according to the company.

"We believe retaining the Kinnjiu structure will enable Kinnate to continue to invest in innovation and clinical development of its kinase inhibitors in the People's Republic of China, Hong Kong, Macau and Taiwan," said Kinnate CEO Nima Farzan.

In addition, the company said that trial sites for a global phase 1 study evaluating exarafenib in patients with advanced solid tumors having BRAF class 1, 2 and 3 alterations, and/or who have NRAS mutant melanoma were now open in China and Taiwan.

The trial is enrolling patients at more than 30 sites globally, according to the company.

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