Lupin spins out 2 cancer drug programmes into US-based Kaveri Therapeutics

New company to raise capital for global clinical trials; Lupin to retain significant equity stake and provide seed funding

Mumbai-based drugmaker Lupin on Tuesday announced the spin-out of two oncology programmes into Kaveri Therapeutics, a US-based clinical-stage company that will seek external capital to fund development through global clinical trials.

 

The two experimental drugs, LNP7457 and LNP8701, are being studied in patients with advanced solid tumours.

 

LNP7457 blocks a protein called PRMT5 that helps certain cancer cells grow, while LNP8701 targets the RAS signalling pathway associated with tumour growth.

 

Kaveri’s initial focus will include lung, pancreatic and ovarian cancers, as well as cancers involving the central nervous system.

 

Under the agreement, Lupin Inc., the drugmaker’s wholly-owned US subsidiary, will retain a significant equity stake in Kaveri, provide seed funding and grant the company exclusive rights to develop the two programmes.

 

 

Lupin did not disclose the size of its stake, the amount of seed funding or other financial terms of the transaction.

 

Kaveri will operate as an independent entity and seek additional capital to finance clinical development. The structure allows Lupin to retain an economic interest in the assets while placing its capital-intensive global development under a separately funded oncology company.

 

Lupin stock reacted positively to the news rising by more than 1 per cent in morning trade.

 

The new company will be led by Chief Executive Officer (CEO)  Kristi Jones, a biopharmaceutical executive with experience in building and advancing drug-development companies. Dr Robert Pierce will serve as chief medical officer and oversee its clinical development strategy.

 

Both assets have entered clinical development and have reported data at the American Society of Clinical Oncology’s (ASCO’s) annual meeting. LNP7457 presented positive data at the 2025 ASCO meeting, while LNP8701 reported positive findings at the 2026 meeting, Lupin said.

 

The company did not provide detailed clinical results or timelines for their next stages of development in the release.

 

“We are proud to have pioneered these oncology assets and look forward to advancing them through Kaveri Therapeutics,” Lupin CEO Vinita Gupta said.

 

“The strength of these assets, combined with Kaveri’s seasoned leadership team, positions us to accelerate the development of targeted oncology therapies with the goal of bringing meaningful innovation to patients,” she added.

 

Kaveri would pursue biomarker-driven clinical development, explore combinations with other drugs and focus on cancers for which patients have limited treatment options.

 

Lupin’s move echoes earlier efforts by Indian drugmakers to place capital-intensive novel-drug research in specialised entities capable of attracting dedicated funding.

 

Glenmark Pharmaceuticals spun out its innovation business into US-based Ichnos Sciences in 2019, transferring eight clinical and preclinical assets, research centres and biologics infrastructure to the new company. Unlike Kaveri, however, Ichnos was initially a wholly-owned Glenmark subsidiary.

 

Biocon followed a structure closer to the Lupin transaction through Boston-based Bicara Therapeutics, which took forward an oncology asset originating at Biocon and subsequently raised capital from global investors.

 

Biocon retained an equity interest, while Bicara raised $315 million through a US initial public offering in 2024.

 

Indian drugmakers have experimented with different models to fund and advance high-risk novel-drug research, with mixed outcomes.

 

Dr Reddy’s Laboratories created Perlecan Pharma in 2005, transferring select new chemical entity programmes to a separately- funded venture backed by ICICI Venture and Citigroup Venture Capital. It was intended to advance the assets through Phase II trials and explore licensing or co-development opportunities.

 

The model was subsequently unwound following concerns over the pipeline’s commercial prospects, with Dr Reddy’s buying out the external investors and absorbing the business back into the company.

 

Bicara, by contrast, attracted private capital and subsequently listed on Nasdaq, illustrating how the success of such structures depends on clinical data, investor appetite and access to a viable funding pathway.