Why Is Cancer Firm Kinnate Biopharma Stock Trading Lower Today?

Kinnate Biopharma Inc KNTE announced pipeline updates, a reprioritization plan, and workforce restructuring to extend the cash runway.

The company is prioritizing the exarafenib combination, KIN-8741, and discovery efforts around its CDK4 selective program. 

Additionally, Kinnate will pause the development of KIN-7136 and explore strategic alternatives for exarafenib monotherapy and KIN-3248 as part of the reprioritization plan. 

As of September 18, 2023, exarafenib plus binimetinib was generally well-tolerated in two dose cohorts and cleared by a dose review committee. Exploration of the two final dose pairs for the combination regimen is underway.

In Q4 of 2023, the company intends to select two doses for further development.

Kinnate expects to file an IND application for KIN-8741 with the FDA in the fourth quarter of 2023.

Kinnate will not proceed with further clinical development of exarafenib as a monotherapy agent and will explore strategic alternatives.

Kinnate will implement a corporate restructuring by reducing the company's workforce by approximately 70%. It expects to have 28 remaining full-time employees. 

The company is also taking related measures to reduce operating expenses. It includes separating from all employees of its wholly-owned subsidiary in China, Kinnjiu Biopharma.

As of June 30, 2023, Kinnate had approximately $204.3 million in cash, cash equivalents and investments, which is anticipated to fund operations into at least Q2 of 2026.

Price Action: KNTE shares are down 12.90% at $1.48 during the premarket session on the last check Tuesday.