BridgeBio Spinout Launches with $200M for KRAS Cancer Treatments

A prominent group of biotechnology investors has committed $200 million to the newly established BridgeBio Oncology Therapeutics, a spinout from BridgeBio Pharma dedicated to developing drugs targeting two prevalent cancer genes. Initially organized as a BridgeBio subsidiary known as TheRas, the new entity will focus on advancing three drug candidates. Two of these candidates aim to address cancers driven by mutations in the KRAS gene, while the third seeks to inhibit signaling between two proteins commonly implicated in tumor growth.

The financing round was led by Cormorant Asset Management and Omega Funds, with participation from nine other venture firms, including Deerfield Management and GV.

Historically, pitching investments in cancer drugs targeting the KRAS gene would have been a challenging endeavor. For decades, cancer researchers struggled to target the oncogene KRAS, known to be a frequent catalyst for tumors in the lungs, colon, and pancreas. Their efforts had been largely unsuccessful, earning KRAS the reputation of being "undruggable."

A breakthrough came in 2013 when scientists at the University of California, San Francisco, identified a way to target a specific pocket on a mutated KRAS protein with drugs. This discovery spurred a new wave of drug development, which ultimately led to the approval of Amgen’s Lumakras in 2021 and Mirati Therapeutics’ Krazati in 2022.

With these developments, BridgeBio Oncology Therapeutics no longer faces the challenge of convincing investors that targeting KRAS is feasible. Instead, its pitch focuses on improving existing KRAS drugs. The company’s most advanced candidate, BB-8520, is designed to bind to both the active and inactive forms of the mutated KRAS protein, unlike Lumakras and Krazati, which only bind to the inactive form. Eli Wallace, the CEO of BridgeBio Oncology Therapeutics, emphasized that the company’s approach focuses on inhibiting the active protein form, which primarily drives tumor growth. Wallace also noted that resistance mechanisms to current KRAS inhibitors often involve extended periods of the protein being in its active state.

BB-8520 is already undergoing clinical testing, with a Phase 1 study involving lung cancer patients initiated this month. Another KRAS inhibitor in the company’s pipeline aims to bind to various mutated forms of the KRAS protein and is in the earlier stages of development. The company plans to seek regulatory approval early next year to begin testing this candidate.

Additionally, BridgeBio Oncology Therapeutics is developing a different type of cancer drug, BBO-10203, described by Wallace as a protein-protein interaction inhibitor. This drug aims to block the interaction between the RAS and PI3Ka proteins, a signaling pathway often implicated in tumor growth. Muting this signaling could potentially slow tumor development, given that PI3Ka mutations are prevalent in many cancer types. The company hopes to start enrolling patients in a trial for BBO-10203 later this year.

Previously, these drugs were part of BridgeBio Pharma’s pipeline under the subsidiary TheRas. Now, they belong to the independent BridgeBio Oncology Therapeutics. Frank McCormick, a director at BridgeBio Pharma, will chair the new company’s board, while Neil Kumar, CEO of BridgeBio Pharma, will serve as a director. The new company will initially employ about 50 people.

Wallace noted that the transition to an independent entity has been relatively seamless due to BridgeBio's hub-and-spoke system, which consolidates employees and assets within a standalone group. The funding is expected to provide operational runway for 18 to 24 months.