Bayer bets $1.3B on Kumquat's KRAS inhibitor cancer drug

Bayer has partnered with Kumquat Biosciences on a KRAS G12D inhibitor, committing up to $1.3 billion for a global license as the drug enters phase 1a trials.

Why it matters: KRAS G12D mutations, found in 38% of pancreatic cancers, represent a major unmet need in oncology. This deal positions Bayer to compete in a growing race to drug this once “undruggable” cancer target while Kumquat gets to participate in profit and loss sharing in the U.S. market. 

Backstory:

• KRAS is one of the most common oncogenes, but its structure has long made it elusive to drug development.

• Breakthroughs by Amgen and Mirati on KRAS G12C reignited efforts to target other KRAS mutations, including G12D.

• Kumquat, already collaborating with Eli Lilly and Takeda, recently received FDA clearance to begin human testing.

Big picture: Bayer joins a crowded field chasing KRAS G12D, including Revolution Medicines, Astellas, and Roche. With BMS exiting the race, strong contenders are pushing forward to claim dominance in this high-value cancer segment.

Market advantage:

• Kumquat and Bayer complement each other with Kumquat leading the phase 1a trial and Bayer handling the later-stage R&D and commercialization.

• Bayer aims to complement its precision oncology pipeline, which includes phase 3 drugs like darolutamide and sevabertinib.

• This partnership could give them the edge over the current frontrunner, Revolution Medicines’ zoldonrasib, which is starting a pivotal trial next year.