Tuhura Biosciences Surges After-Hours As Investors Bet On Kineta Merger, Cancer Drug Pipeline

Shares of Tuhura Biosciences surged 20.2% in after-hours trading on Monday after the company and Kineta, Inc. said shareholders from both firms approved their proposed merger and all related proposals at special meetings held earlier in the day.

The stock closed Monday's regular session slightly lower at $2.53, down 0.8%.

The merger will combine Tuhura's clinical-stage immuno-oncology platform, including its Phase 3-ready lead asset IFx-2.0, with Kineta's Vista-blocking antibody KVA12123 and a preclinical CD27-targeted therapy.

The merged company aims to address primary and acquired resistance to current cancer immunotherapies.

Tuhura stockholders approved key measures, including increasing authorized shares to 200 million and reincorporating the company in Delaware. 

Kineta stockholders also approved the merger terms at a separate special meeting.

The transaction is expected to close soon, subject to the fulfillment or waiver of remaining conditions. 

Tuhura is planning to initiate a randomized Phase 3 trial of IFx-2.0 in combination with Keytruda (pembrolizumab) as first-line therapy for advanced or metastatic Merkel Cell Carcinoma.

Kineta's Vista therapy, KVA12123, had previously entered Phase 1/2 trials for solid tumors but was paused in 2024 amid a corporate restructuring that included job cuts to reduce expenses and preserve cash.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘extremely high’ message volume.

One user said Tuhura could trade above $10 and reach valuations higher than $15. 

Another user noted that the stock had consistently moved higher near the close in recent sessions.

Tuhura’s stock has declined 38.4% so far in 2025.

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