Dive Brief:

• Kura Oncology is spinning out a new company that intends to develop medicines known as menin inhibitors on diabetes and other cardiometabolic diseases.
• Called Caspian Therapeutics, the startup is initially focusing on a drug codenamed “KO-7246.” Preclinical testing has suggested the treatment might help the body regenerate pancreatic beta cells and produce more insulin in people with diabetes. That strategy represents a potentially new use for menin inhibitors, two of which have been approved in the U.S. to treat leukemia.
• Caspian has raised $50 million in financing to get going. While far smaller than the $100 million-plus “megarounds” that have become commonplace in biotech, Caspian can get by with less because it shares operational teams with Kura, according to Kura CEO and Caspian executive chairman Troy Wilson. Kura participated in the funding and will retain about a 50% stake in the fledgling firm, which is also backed by BVF Partners, Eli Lilly, the T1D Fund and other investors.

Dive Insight:

Kura had already started testing menin inhibition outside of oncology before it decided to spin out Caspian. But it wasn’t until this past spring that Wilson and his team realized KO-7246 needed a separate home.

“As a company at our size and stage, you cannot be all things to all people,” Wilson said in an interview. “We needed to bring in dedicated expertise and capital. We needed to infuse it with the assets, the people and the capital to make a difference.”

Kura and another company, Syndax Pharmaceuticals, have already proven that blocking menin — a protein that controls gene expression and cell signaling — is an effective tool in treating acute myeloid leukemia. In AML, stifling an interaction between menin and another protein called KMT2A prevents leukemia cells from rapidly reproducing. Syndax’s therapy, Revuforj, was approved last October. Kura’s, called Komzifti and co-developed with Kyowa Kirin, got to market shortly afterwards. It generated nearly $15 million in sales in the first half of 2026.

In diabetes, blocking menin can “take the brakes off pancreatic beta islet cells,” which is necessary for restoring normal levels of glucose and insulin production, Wilson said. KO-7246 is being tested in both Type 1 and Type 2 diabetes.

Caspian has one direct competitor in Biomea Fusion, which is also making a menin inhibitor that’s currently in mid-stage testing. But while Biomea “has a time advantage,” Caspian’s drug could have a superior safety profile, Wilson said.

Importantly, preclinical research has shown Caspian’s drug doesn’t appear to spur abnormal growth in other cell types. Additional data will be presented at a medical meeting later this month. The company has not disclosed when it plans to begin human testing.

Caspian is also exploring the possibility of using menin inhibitors in conjunction with GLP-1 drugs to help patients who cannot control their diabetes with existing treatments.

“Once you have a drug that has good safety and clinical activity, give it to talented scientists and clinicians, and they'll help you learn how to use it,” Wilson said.

Kura’s stock price dipped slightly on Wednesday morning, though TD Cowen analyst Phil Nadeau wrote in a note to clients that the spinout appeared to “offer shareholders opportunity for upside while reducing the downside risk.”

The deal enables the “efficient development of KO-7246 while Kura’s resources remain focused on oncology,” Nadeau wrote.