Kura Oncology (Nasdaq: KURA) and its spinout Caspian Therapeutics have detailed a development strategy for KO-7246, an oral menin inhibitor being evaluated as a potential treatment for diabetes, according to a press release from the companies.

Kura launched Caspian in September 2026 with $50 million in financing led by BVF Partners, with participation from T1D Fund, Invus, Montanova, Eli Lilly and Company, Kura Oncology, members of Kura's leadership team, and several biotech entrepreneurs. Kura contributed KO-7246 and related intellectual property to Caspian and retains approximately half ownership of the company.

The companies presented preclinical findings at the 62nd European Association for the Study of Diabetes Annual Meeting. In a mouse model of Type 2 diabetes, KO-7246 increased insulin levels and expanded insulin-producing beta cells. When combined with semaglutide, the drug produced an initial reduction in blood sugar with a sustained effect. No hypoglycemia was observed in treated animals.

In a rat model of severe insulin deficiency, animals that responded to treatment regained normal blood sugar control, with effects persisting one month after treatment was stopped. The companies also reported that KO-7246 stimulated beta cell proliferation in human islet tissue samples from multiple donors without increasing proliferation of other cell types.

Caspian said it is conducting investigational new drug-enabling development to support a Phase 1 clinical proof-of-concept study assessing safety and endogenous insulin production in patients with Type 1 or Type 2 diabetes. The study plans to measure stimulated C-peptide, a marker of insulin production, during treatment and follow-up.

Proceeds from the $50 million financing are expected to support KO-7246 through initial clinical proof of concept and the advancement of a second menin inhibitor candidate. Caspian operates with its own leadership team and board but has access to Kura's research and development capabilities through an intercompany services arrangement.