Lupin Spins Out Two Oncology Programs to Kaveri Therapeutics

MUMBAI, India & NAPLES, Fla. — Global pharmaceutical company Lupin Limited (NSE: LUPIN, BSE: 500257) announced that its wholly-owned U.S. subsidiary, Lupin Inc., has executed a licensing agreement to spin out two proprietary clinical-stage oncology assets into Kaveri Therapeutics Inc., an independent U.S.-based biotech enterprise.

Under the terms of the transaction, Lupin Inc. granted exclusive perpetual licenses for its PRMT5 inhibitor (LNP7457) and SOS1/RAS pathway inhibitor (LNP8701) programs to Kaveri in exchange for an 82.2% equity stake (valued at $1.6 million) and seed funding. The strategic spin-out enables Kaveri to lead global clinical development, trial execution, and external capital raising focused on hard-to-treat solid tumors.

Executive Leadership and Independent Corporate Governance

Kaveri Therapeutics will operate as an independent clinical-stage company headquartered in Delaware, U.S.A., with dedicated corporate leadership tasked with advancing the licensed pipeline through global multi-center trials.

The executive team is led by Chief Executive Officer Kristi Jones, a biopharmaceutical executive with a background in corporate scaling and commercial strategy, alongside Chief Medical Officer Dr. Robert Pierce, who will oversee clinical development strategies, trial protocols, and regulatory filings.

Clinical Progress of Spun-Out Assets: LNP7457 and LNP8701

Both drug candidates target critical oncogenic pathways associated with solid tumors, including lung, pancreatic, ovarian, and central nervous system (CNS) cancers:

• LNP7457 (PRMT5 Inhibitor): Designed to selectively inhibit Protein Arginine Methyltransferase 5, addressing specific genetic alterations in solid tumors. The candidate reported positive Phase 1 clinical data at the American Society of Clinical Oncology (ASCO) meeting in 2025.

• LNP8701 (SOS1 Inhibitor): Blocks Son of Sevenless 1 (SOS1)-mediated RAS activation, limiting signaling that drives tumor proliferation. Phase 1 trial data presented at ASCO 2026 demonstrated acceptable safety, favorable pharmacokinetics, and disease stabilization in advanced solid tumor cohorts.

Strategic Rationale and Capital Allocation Strategy

By transitioning early-stage clinical assets into a dedicated U.S. vehicle, Lupin optimizes its capital allocation framework. Kaveri Therapeutics will seek external venture capital and institutional funding to finance broader Phase 1b and Phase 2 combination trials, removing direct, capital-intensive R&D spending from Lupin's core operational balance sheet while retaining majority equity upside.

Official Statements Section

Corporate actions and regulatory filings detailing the transaction were submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

"We are proud to have pioneered these oncology assets and look forward to advancing them through Kaveri Therapeutics," said Vinita Gupta, Chief Executive Officer of Lupin Limited. "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."

Why It Matters

• For Cancer Patients: Accelerates clinical trial progression for targeted novel therapies addressing solid tumors with limited standard-of-care options.

• For Biotech Investors: Establishes a focused, U.S.-based clinical vehicle capable of raising dedicated venture capital for targeted oncology assets.

• For Lupin Shareholders: Unlocks pipeline value and reduces direct R&D capital expenditure while maintaining significant long-term equity exposure (82.2%) in the spun-out entity.

Key Facts at a Glance

• Transaction Structure: Lupin Inc. grants exclusive perpetual licenses to Kaveri Therapeutics for an 82.2% equity stake.

• Spun-Out Assets: LNP7457 (PRMT5 inhibitor) and LNP8701 (SOS1 inhibitor).

• Key Executive Appointments: Kristi Jones named CEO; Dr. Robert Pierce named CMO.

• Primary Objective: Advance clinical-stage solid tumor programs through external capital raising and global clinical trials.

Frequently Asked Questions (FAQ)

What oncology programs did Lupin spin out to Kaveri Therapeutics?

Lupin spun out two novel clinical-stage oncology programs: LNP7457, a PRMT5 inhibitor, and LNP8701, an oral SOS1 inhibitor targeting RAS-driven solid tumors.

What is Lupin’s ownership stake in Kaveri Therapeutics?

Lupin Inc., a wholly owned U.S. subsidiary of Lupin Limited, received 332,000 common shares, representing an 82.2% equity stake in Kaveri Therapeutics in exchange for the exclusive licenses.

How will Kaveri Therapeutics fund its ongoing clinical trials?

As an independent entity, Kaveri will utilize initial seed funding provided by Lupin Inc. and actively seek additional external equity capital from biopharmaceutical investors to fund its global clinical trials.

Source: Official regulatory disclosures filed by Lupin Limited on the National Stock Exchange of India (NSE) and BSE Limited; official company press release distributed via PR Newswire; and clinical trial data presented at the American Society of Clinical Oncology (ASCO) meetings.