Kairos Pharma Ltd (NYSEAMERICAN: KAPA) is expanding its fight against lung cancer by acquiring key assets from privately-held Celyn Therapeutics.
The company signed a binding agreement on Mar. 2 to gain exclusive worldwide rights to two promising drugs: CL-273 and CL-741.
These drugs target non-small cell lung cancer (NSCLC), which makes up about 85 per cent of all lung cancer cases. NSCLC often involves mutations in genes like epidermal growth factor receptor (EGFR), which drive tumour growth. In Western countries, 10 to 15 per cent of patients have these EGFR mutations, while in Asian populations, the rate climbs to 50 per cent.
Current treatments can lose effectiveness over time as cancers develop resistance, leaving patients with few options. CL-273 acts as a smart blocker for mutated EGFR proteins without harming healthy ones.
Developers created it using artificial intelligence to spot and attack specific weaknesses in cancer cells. How it is administered has not been specified in public documents. It aims to reverse resistance in patients who no longer respond to standard therapies.
The second asset, orally-delivered CL-741, complements this by targeting another protein called c-MET, which often teams up with EGFR to fuel cancer growth and spread.
Together, these drugs could offer a powerful treatment combo for fighting tough-to-treat lung cancers.
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Specifics of the deal
Kairos is paying for the assets by giving Celyn a 16.5 per cent stake in its company plus a US$15 million payment when the drugs reach a key FDA milestone. Also, a 2 per cent cut of United States sales.
This deal taps into a massive industry. Future Market Insights estimates that the market for EGFR-mutated lung cancer treatments will hit US$16.2 billion the end of this year.
Celyn, a private firm supported by investors like OrbiMed and Torrey Pines, brings AI expertise to the table. Kairos plans to fast-track clinical trials using its setup at Cedars-Sinai Medical Center in Los Angeles.
“By partnering with Kairos Pharma and leveraging their clinical consortia at Cedars-Sinai Medical Center, we are positioned to rapidly advance CL-273 and CL-741,” said Celyn chief executive Nikolay Savchuk in a news release on Feb. 26.
The acquisition adds to Kairos’s lineup, which already includes therapies for prostate and other cancers. Kairos Pharma stands as a Los Angeles-based biopharma firm founded in 2013, specializing in drugs that outsmart cancer’s defences against treatments and the immune system. Its lead drug, ENV-105, is undergoing Phase 2 trials for prostate cancer and Phase 1 for lung cancer.
Kairos stock jumped 16 per cent after the deal announcement, signalling investor confidence amid a recent 48 per cent six-month dip.
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