On February 29, 2024 Kineta, Inc. (Nasdaq: KA), a clinical-stage biotechnology company focused on the development of novel immunotherapies in oncology that address cancer immune resistance, reported that it has completed a review of its business, including the status of its programs, resources and capabilities (Press release, Kineta, FEB 29, 2024, View Source;utm_medium=rss&utm_campaign=kineta-announces-restructuring-and-exploration-of-strategic-alternatives [SID1234640656]). Following this review, Kineta is implementing a significant corporate restructuring to substantially reduce expenses and preserve cash. The restructuring includes a significant workforce reduction and the termination of enrollment of new patients in its ongoing VISTA-101 Phase 1/2 clinical trial evaluating KVA12123 in patients with advanced solid tumors. Patients currently enrolled in the trial will be permitted to continue to participate. The company has made this decision, in part, because certain investors have indicated they will not fulfill their funding obligations pursuant the previously disclosed second tranche of the company’s contemplated private placement later this year.
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The company will conduct a comprehensive exploration of strategic alternatives focused on maximizing shareholder value including potential sale of assets of the company, a sale of the company, licensing of assets, a merger, liquidation or other strategic action. There can be no assurance that the exploration of strategic alternatives will result in any agreements or transactions, or that, if completed, any agreements or transactions will be successful or on attractive terms. The company does not expect to disclose or provide an update concerning developments related to this process until the company enters into definitive agreements or arrangements with respect to a transaction or otherwise determines that other disclosure is necessary or appropriate.
Kineta is reducing its workforce by approximately 64%, which will result in the elimination of seven positions. This includes Kineta’s Chief Executive Officer, Shawn Iadonato, Ph.D., who will continue to serve on the company’s Board of Directors, and Kineta’s General Counsel and Secretary, Pauline Kenny. Each of Dr. Iadonato and Ms. Kenny will continue to support the company in a consulting capacity until December 31, 2024.
"We continue to believe in the promise of KVA12123 and are enthusiastic about the trial data that has been collected to date," said Shawn Iadonato, Kineta CEO. "We are deeply disappointed that certain investors in the April financing will not fulfill their funding obligations."