AI drug turnaround company Ignota Labs has acquired the complete clinical pipeline of Kronos Bio, rescuing three promising but failed drug candidates that were shelved despite tens of millions of dollars in prior investment. The acquisition includes istisociclib, a CDK9 inhibitor, along with SYK inhibitors entospletinib and lanraplenib, targeting significant unmet needs in blood cancers and autoimmune disorders.
Kronos Bio, which once commanded a valuation of $3.5 billion following its IPO, ceased operations earlier this year after failing to advance its assets beyond Phase 2 trials. The company's lead candidate istisociclib was terminated for ovarian cancer development last year after clinical trials revealed concerning neurological side effects. The SYK inhibitors entospletinib and lanraplenib were in Phase 3 and Phase 1b clinical development for acute myeloid leukemia before being discontinued.
AI-Powered Drug Rescue Strategy
Ignota Labs specializes in reviving promising but failing drug candidates through its proprietary AI platform, SAFEPATH, which combines cheminformatics and bioinformatics to identify root causes of safety issues. The platform addresses a critical gap in drug development where safety assessments typically reveal what went wrong—such as liver damage or heart issues—but fail to explain why these problems occurred or how they might be mitigated.
"We are acquiring assets that have demonstrated therapeutic effect, but failed in their development and were shelved despite tens of millions of dollars already invested in them," said Sam Windsor, Co-Founder and CEO at Ignota Labs. "This is where Ignota Labs come in: unlocking value by turning around failing drugs so that they can quickly get back into clinical trials and bring fresh hope to the patients waiting for these drugs."
Substantial Market Opportunities
The acquired assets target significant market opportunities in underserved therapeutic areas. Chronic lymphocytic leukemia represents an $8 billion global market, while immune thrombocytopenia purpura presents a $1.5 billion opportunity. Both CDK9 inhibitors and SYK inhibitors have previously demonstrated clinical benefit to patients, according to Dr. Jordan Lane, Co-Founder and Chief Scientific Officer at Ignota Labs.
"These drugs are desperately needed. Both CKD9 inhibitors and SYK inhibitors have shown clinical benefit to patients," Lane explained. "By in-licensing these drugs, we are uniquely placed to bring these best-in-class drugs to patients with diseases that desperately need them."
Acquisition Structure and Next Steps
The deal was structured through Concentra Biosciences, a serial biotech acquisition specialist that purchased Kronos for approximately $35 million earlier this year. Concentra has now transferred the clinical assets to Ignota in exchange for a modest upfront fee and undisclosed milestone payments tied to clinical development targets.
Ignota's proprietary process will now assess the Kronos assets to identify the specific issues, solve the causes of toxicity, and develop the drugs both clinically and commercially. The Cambridge-based company, founded by Cambridge researchers and pharmaceutical consultants, raised $6.9 million in seed funding earlier this year for its first in-licensed asset, a PDE9A inhibitor with potential in cardiovascular, metabolic, and neurodegenerative diseases.
The acquisition represents a strategic approach to drug development that focuses on understanding and solving the fundamental causes of drug failure rather than abandoning promising therapeutic approaches. With advanced machine learning models and a multimodal data approach, Ignota aims to provide actionable insights that could bring these shelved assets back to clinical trials and ultimately to patients in need.
