SEATTLE - Kineta, Inc. (NASDAQ: KA), a biotechnology firm focused on the development of immunotherapies for cancer, shared updates on its financial status and the progress of its clinical trials. The company, which has been undergoing significant restructuring due to financial challenges, reported a cash position of $1.8 million as of March 31, 2024, a decrease from $5.8 million at the end of 2023.
The financial strain has led to a workforce reduction and a suspension of new patient enrollment in the VISTA-101 Phase 1/2 clinical trial evaluating KVA12123 in patients with advanced solid tumors. Despite these setbacks, Kineta has received a $500,000 investment from an existing investor and is actively pursuing litigation against two larger investors who failed to fulfill their funding obligations.
In clinical developments, Kineta announced positive safety data from the ongoing VISTA-101 trial. The monotherapy cohort of the trial, involving dose escalation of KVA12123, showed stable disease in nine of 12 patients, with one patient experiencing stable disease for 28 weeks.
In the combination therapy cohort, one patient with renal cell carcinoma showed a 24% reduction in target lesions, while another with mucoepidermoid carcinoma had a 54% reduction in target lesions and complete response in non-target lesions.
No dose-limiting toxicities were observed, and there was no evidence of cytokine release syndrome at any dose level. The company also highlighted dose-dependent increases in certain immune cells and pro-inflammatory cytokines and chemokines, suggesting an on-target effect of the treatment.
Kineta is exploring strategic alternatives to maximize shareholder value, which may include asset sales, mergers, or other actions. The company anticipates additional safety and efficacy data from the KVA12123 monotherapy and combination therapy trials in the second quarter of 2024.
The company's financial report for the first quarter of 2024 showed a net loss of $10.2 million, or $0.89 per share, compared to a net loss of $6.5 million, or $0.77 per share, in the same period of the previous year.
This article is based on a press release statement from Kineta, Inc. The company's forward-looking statements are subject to risks and uncertainties, and there is substantial doubt about its ability to continue as a going concern.
InvestingPro Insights
Kineta, Inc. (NASDAQ: KA) finds itself in a challenging financial situation, as reflected in the latest data and analysis. According to InvestingPro, Kineta holds more cash than debt on its balance sheet, which is a positive sign for the company's liquidity. However, the company is quickly burning through cash, which aligns with the reported decrease in its cash position from the end of 2023 to March 31, 2024. This rapid cash depletion is a critical factor for investors to consider, particularly in light of the company's ongoing clinical trials and restructuring efforts.
InvestingPro Data shows that Kineta has a market capitalization of $5.45 million, and despite a significant revenue growth of 178.65% over the last twelve months as of Q4 2023, the company has been operating at a loss with a negative gross profit margin of -65.8%. The company’s stock has experienced substantial volatility, with a price total return of -84.38% over the last year, reflecting the high-risk nature of investing in this biotech firm.
For investors looking to delve deeper into Kineta's financial health and stock performance, InvestingPro offers additional insights. There are currently 15 InvestingPro Tips available, which can help investors make more informed decisions. To access these insights and tips, visit https://www.investing.com/pro/KA. Remember, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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