Kronos Bio is undergoing a strategic reorganization, including a staff reduction of 19%, following promising early trial results for a cancer drug candidate. This downsizing is a strategic move to prolong Kronos’ financial resources, as disclosed in a recent press release. CEO Norbert Bischofberger, Ph.D., acknowledged the difficulty of the decision but emphasized its necessity for the company’s future.
Concurrently, Kronos shared promising early findings from the dose-escalation phase of a phase 1/2 study for KB-0742, which demonstrated potential efficacy in treating tough sarcomas, supporting previous preclinical findings.
With these results in hand, the company is now fully committing to the development of the CDK9 inhibitor.
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“The data demonstrated on-mechanism, single agent anti-tumor activity in heavily pre-treated patients with transcriptionally addicted solid tumors. We have not yet defined a maximum tolerated dose and we may unlock even better anti-tumor activity at higher doses or on alternative schedules as the study progresses.”
– Norbert Bischofberger, CEO
The layoffs will lead to approximately $1.8 million in severance costs for the affected employees, as detailed in a regulatory filing. These costs will be recognized in the fourth quarter, with the workforce reduction being finalized immediately. Additional costs of up to $300,000 are anticipated over the following six months, covering health insurance benefits.
Kronos also plans to focus on its collaborations with Genentech and the development of lanraplenib for acute myeloid leukemia (AML) in a phase 1b/2 study.
“By streamlining our operations and extending our runway, we best position the company to optimally fund our KB-0742 clinical studies while continuing to focus on the clinical development of lanraplenib, the advancement of our maturing discovery projects, and our collaboration with Genentech.”
– Norbert Bischofberger, CEO
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The partnership with Genentech is particularly significant for Kronos, involving an upfront payment of $20 million and potential milestones that could exceed $177 million for the first program, plus $100 million for the first licensed product. These programs target specific transcription factors identified by Genentech.
This operational refocusing is aimed at conserving funds to ensure the continuation of clinical trials for KB-0742, furthering lanraplenib’s development, supporting the company’s discovery projects, and sustaining the Genentech collaboration. Following a previous expectation that its cash would last into the second half of 2025, Kronos now anticipates its financial runway will extend into 2026 due to these new measures.
