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Pharmaceutical giant Bayer and clinical-stage biotech company Kumquat Biosciences Inc. today announced an exclusive global license and collaboration agreement, under which Kumquat will receive up to $1.3B to develop and commercialize its pancreatic cancer-focused drug candidate.

Under the terms of the agreement, Kumquat will receive funding that includes upfront payments, clinical and commercial milestones, and additional tiered royalties on net sales of its KRAS G12D inhibitor. The collaboration is designed to accelerate the clinical development of Kumquat’s promising cancer drug candidate, while leveraging Bayer’s global development and commercialization capabilities.

KRAS G12D mutations, the target of the therapy, are commonly found in pancreatic ductal adenocarcinoma, colorectal cancer, and non-small cell lung cancer. These mutations drive tumor growth and represent critical targets for precision oncology treatments.

Kumquat received FDA clearance for its investigational new drug in July, marking a significant milestone in its clinical development program.

“Since pioneering the direct targeting of KRAS G12C over a decade ago, we have continued to develop strategies to target other KRAS mutants, including KRAS G12D,” said Yi Liu, CEO of Kumquat. “This collaboration with Bayer validates our platform and provides the financial resources to advance our KRAS G12D program while accelerating our broader clinical pipeline for long-term value.”

Under the agreement, Kumquat will oversee the initiation and completion of the drug’s Phase 1A study, while Bayer will lead subsequent development and commercialization activities. Kumquat will also retain an exclusive option to negotiate U.S. profit-loss participation.

“We are committed to exploring innovative approaches to improve patient outcomes, particularly in areas of high unmet medical need,” said Juergen Eckhardt, Head of Business Development and Licensing at Bayer Pharmaceuticals. “This collaboration complements Bayer’s robust early precision oncology pipeline and advances our shared goal of delivering transformative treatments to patients.”

This strategic partnership highlights the growing focus on precision oncology and represents a significant investment in next-generation cancer therapies.