Kineta, Inc. Reports Reduced Losses and Strategic Initiatives Amid Financial Challenges

Kineta, Inc. reported a significant reduction in its financial losses for the first quarter of 2025, with a net loss of $1.7 million compared to a net loss of $10.2 million in the same period of 2024. The company’s total operating expenses decreased to $2 million from $6.4 million year-over-year, primarily due to a 77% reduction in research and development expenses, which fell to $617,000 from $2.7 million. This decline was attributed to lower clinical and manufacturing costs associated with its lead product candidate, KVA12123, and the suspension of other programs due to funding challenges.

Kineta's financial position remains precarious, with an accumulated deficit of $184.6 million as of March 31, 2025, and cash reserves of only $304,000. The company has expressed substantial doubt about its ability to continue as a going concern, emphasizing the need for additional capital to fund ongoing operations and development activities. Kineta is currently exploring various strategic alternatives, including potential asset sales, mergers, or even liquidation, should its proposed merger with TuHURA Biosciences not materialize.

In terms of operational developments, Kineta has made strides in its clinical programs. The company resumed enrollment in its ongoing VISTA-101 Phase 1/2 clinical trial evaluating KVA12123 in August 2024, completing the Phase 1 study in February 2025. However, the company has also faced challenges, including a significant workforce reduction of approximately 64% and the suspension of new patient enrollments in early 2024 due to funding issues. As of March 31, 2025, Kineta had 13,540,355 shares of common stock outstanding.

Strategically, Kineta has entered into a merger agreement with TuHURA, which includes provisions for a loan of $250,000 to support its operations. Additionally, the company has recently signed an asset purchase agreement with Philanthropos Therapeutics for the sale of certain assets related to its LHF-535 product candidate, which will provide an upfront payment of $50,000 and potential future revenue-sharing opportunities. Kineta's management has indicated that the outcome of these strategic initiatives will be critical for the company's future viability.

Looking ahead, Kineta anticipates continued operating losses as it invests in the clinical development of its product candidates. The company has not generated any revenue from product sales to date and does not expect to do so in the near future. The management team remains focused on securing additional funding and successfully navigating the proposed merger with TuHURA to stabilize the company's financial situation and advance its clinical programs.