STAT+: Leukemia drug data suggested a different way to treat diabetes. A new biotech will test that idea

Kura Oncology's work targeting menin, a protein involved in cell division and signaling, produced a notable bonus finding: in animal studies, menin inhibition not only controlled the growth of leukemia cells but also helped control blood sugar levels. That observation suggested a different potential approach to treating diabetes and related metabolic conditions.

Kura announced Wednesday that it is forming Caspian Therapeutics to pursue that idea. Caspian is launching with $50 million in financing to develop menin inhibitors for diabetes and other cardiometabolic diseases. The initial funding was led by BVF Partners and joined by Eli Lilly and members of Kura's leadership team, among others. The money is intended to advance Caspian's lead small molecule drug through an early-phase clinical trial in diabetes and to support development of a second candidate.

Kura will retain around 50% ownership of Caspian, and Kura CEO Troy Wilson will serve as executive chair of the new biotech's board. Robert Spencer, most recently CEO of Neurommune Therapeutics and previously a leader of drug discovery programs at Merck, was named Caspian's head.