The stock price of OnKure Therapeutics, Inc. (NASDAQ: OKUR) saw a significant rebound last Friday during after-hours trading. OKUR stock recovered by rising 4.78% to reach $19.30 after dropping 3.05% during the regular session ending at $18.42. The successful conclusion of a major merger deal is the reason for this upward increase in the share price.
OnKure Completed The Merger Successfully
Earlier this month, OnKure Inc and Reneo Pharmaceuticals completed their merger. Because of this strategic consolidation, the recently formed business can now operate under the name OnKure Therapeutics, Inc. On October 7, 2024, shares of the combined company began trading on the Nasdaq Global Market under the symbol “OKUR.”
Concurrent with the merger was a successful $65 million private placement that involved both new and existing investors. Following these transactions, OnKure is well-equipped with a cash runway that is projected to extend through multiple clinical readouts, continuing into the fourth quarter of 2026.
Focus on PI3Kα Inhibitor Portfolio
With the merger finalized, OnKure is poised to accelerate the development of its innovative portfolio of mutant-specific PI3Kα inhibitors. Leveraging its specialized knowledge in PI3K-mutated cancers, the company aims to effectively target and exploit the vulnerabilities associated with these oncogenic threats, ultimately benefiting patients who currently suffer from these conditions.
Promising Clinical Developments Ahead
OnKure’s lead program, OKI-219, holds significant potential to benefit breast cancer patients. The PIKture-01 trial for OKI-219 is currently underway, with early clinical data expected to be released in the fourth quarter of 2024. Additionally, OKUR plans to initiate combination arms of the PIKture-01 trial, marking an important step in the ongoing development of its therapeutic portfolio.
In conjunction with the merger’s completion, Reneo executed a 1-for-10 reverse stock split of its common stock. Following this adjustment, prior stockholders of OnKure, Inc. will own approximately 53.6% of the combined company’s outstanding shares, while previous Reneo stockholders and private placement investors will hold approximately 25.1% and 21.3%, respectively.
