KdT Ventures Launches New Biotech Startup to Develop NGM Bio’s Rare Disease Drug Candidate NGM313

Partnership and Licensing Agreement:
KdT Ventures and NGM Biopharmaceuticals (NGM Bio) have entered into a worldwide license agreement for NGM313, a Phase 2-ready FGFR1c/β-Klotho receptor complex agonistic antibody134.

New Biotech Startup:
KdT Ventures has formed a new company (NewCo) to develop NGM313 for a rare disease, marking the first non-metabolic indication for the drug candidate134.

Financial Terms:
NGM Bio will receive an upfront payment, up to $608 million in potential development, regulatory, and sales milestone payments, and tiered royalties on net sales, as well as equity in the new company134.

Background of NGM313:
NGM313 was originally developed by NGM Bio for diabetes and metabolic dysfunction-associated steatohepatitis (MASH). It was licensed to Merck & Co. in 2019 but returned after failing to meet effectiveness thresholds in a Phase 2 trial1.

Clinical Development:
The new startup plans to initiate a Phase 2 proof-of-concept study for NGM313 in a rare disease indication in 2025134.

NGM Bio's Recent Financing:
NGM Bio recently secured a $122 million Series A financing to fund trials for other rare diseases, including primary sclerosing cholangitis and hyperemesis gravidarum2.

Sources:

1. https://www.biopharmadive.com/news/ngm-kdt-newco-rare-disease/736072/

2. https://news.ngmbio.com/news-releases/news-release-details/ngm-bio-announces-122-million-series-financing-initiate

3. https://www.marketscreener.com/quote/stock/NGM-BIOPHARMACEUTICALS-IN-56727727/news/NGM-Biopharmaceuticals-Inc-and-KdT-Ventures-Enter-into-Worldwide-License-Agreement-for-NGM313-Pha-48627584/

4. https://news.ngmbio.com/news-releases/news-release-details/ngm-bio-and-kdt-ventures-enter-worldwide-license-agreement