Kinarus inks convertible loan agreement with Chinese investment firm

Kinarus Therapeutics Holding AG is a clinical-stage biopharmaceutical company developing novel therapeutics to treat viral, respiratory and ophthalmic diseases. The company’s lead candidate KIN001 is a patented combination of two active pharmaceutical ingredients (APIs): pamapimod and pioglitazone. Pamapimod is a highly selective clinical-stage small molecule inhibitor of the p38 MAP kinase signalling pathway. Kinarus has discovered that combining pamapimod with pioglitazone, a safe and well-tolerated marketed drug for the treatment of type 2 diabetes, leads to synergistic efficacy and increased duration of action in preclinical models of wet AMD, Idiopathic Pulmonary Fibrosis (IPF) and other autoimmune/inflammation indications. KIN001 enjoys broad patent protection in the US, EU, China, and other countries through at least 2037.

The company has strengthened its financial position by receiving a convertible loan of CHF 1.5 million from ChaoDian Investment Management Co., Ltd. (CDIM), based in Hangzhou City, China. Under the terms of the loan agreement, CDIM grants a subordinated loan to Kinarus for a fixed period of three years without any interest. During the term of the agreement, the outstanding loan amount can be converted at any time into Kinarus shares with a nominal value of CHF 0.01 at a fixed conversion price of CHF 0.01 per Kinarus share.

Further, the agreement forms the basis for discussions on the introduction, development and commercialization of KIN001 for the treatment of Idiopathic Pulmonary Fibrosis (IPF) in China.

Great Health Companion Group Ltd (GHCG), a subsidiary of Hakim Unique Group, introduced CDIM to Kinarus. “We are pleased that our relationship with GHCG has led to this exciting partnership with CDIM. We believe this investment aligns with the parties’ interests and demonstrates CDIM’s confidence in our mutual success in finding the best solution for KIN001 development and commercialization for the treatment of IPF in China. IPF is a devastating disease with an important unmet medical need in Asia and other markets worldwide. Currently approved drugs have limited efficacy and significant side effects/drug-drug interaction potential. Often patients suspend treatment despite the severity of the disease. This partnership further validates the high potential value of KIN001 in IPF and other indications.

(Press release/RAN)