Curis Secures $80.8M Lifeline to Advance Novel Cancer Drug

LEXINGTON, Mass. – January 09, 2026 – Curis, Inc. has successfully closed a significant private placement financing, securing up to $80.8 million in gross proceeds to fuel the development of its lead cancer drug candidate, emavusertib. The deal, which brings an immediate infusion of approximately $20.2 million, represents a powerful vote of confidence from a syndicate of prominent healthcare-focused institutional investors, providing the biotechnology company with a critical financial runway to push its promising pipeline through key clinical milestones.

The financing was led by Nantahala Capital, Stonepine Capital Management, Pointillist Partners, LLC, and The Red Hook Fund, LP, with participation from other new and existing investors. The capital injection not only extends Curis's cash runway into 2027 but also bolsters its stockholders' equity, addressing previous compliance concerns with Nasdaq listing standards and solidifying its position as it advances its fight against some of the most challenging hematologic malignancies.

A Complex Deal for a Critical Mission

The structure of the private placement, orchestrated by Laidlaw & Company (UK) Ltd. as the sole placement agent, is intricate, reflecting a strategic approach to funding long-term development. The financing involved the sale of 20,195 shares of Series B convertible preferred stock at $1,000 per share. Each of these shares is designed to automatically convert into common stock following shareholder approval, a move that will eventually lead to dilution for existing shareholders but was deemed necessary to secure the substantial capital.

In addition to the preferred stock, the deal includes three series of warrants, each allowing for the purchase of over 26.9 million shares of common stock at an exercise price of $0.75 per share. The expiry terms of these warrants vary, with some extending as far as 2031, while others are tied to specific clinical trial milestones for emavusertib. This structure provides investors with long-term upside potential tied directly to the company's scientific progress.

Curis has earmarked the proceeds to fund its research and development efforts, with a sharp focus on its strategic clinical trials for emavusertib. The funds will be pivotal in advancing studies in Chronic Lymphocytic Leukemia (CLL) and Primary Central Nervous System Lymphoma (PCNSL), as well as enabling the company to resume development in Acute Myeloid Leukemia (AML), an area where emavusertib has already shown encouraging results.

Emavusertib: A Dual-Action Attack on Difficult Cancers

At the heart of this investment is emavusertib (CA-4948), an orally available, small molecule drug with a novel dual-action mechanism. It is designed to inhibit both IRAK4 (Interleukin-1 Receptor Associated Kinase 4) and FLT3 (Fms-Like Tyrosine Kinase 3), two key signaling pathways implicated in the growth and survival of cancer cells.

This dual inhibition is particularly relevant for the diseases Curis is targeting:

• Acute Myeloid Leukemia (AML) and Myelodysplastic Syndromes (MDS): In its TakeAim Leukemia study, emavusertib monotherapy demonstrated significant clinical activity. At a recommended Phase 2 dose of 300 mg twice daily, the drug produced 10 objective responses in 19 evaluable patients with relapsed or refractory AML who had specific genetic mutations. These responses, which included complete remissions, were observed even in patients who had previously been treated with other FLT3 inhibitors, suggesting emavusertib may overcome common resistance mechanisms. The new funding is expected to restart and expand these AML development efforts.

• Primary Central Nervous System Lymphoma (PCNSL): This rare and aggressive lymphoma is notoriously difficult to treat because many drugs cannot effectively cross the blood-brain barrier. Emavusertib has demonstrated this crucial ability in preclinical models. The FDA recently lifted a partial clinical hold on the TakeAim Lymphoma study for this indication, allowing Curis to proceed with evaluating emavusertib in combination with the BTK inhibitor ibrutinib for patients with relapsed/refractory PCNSL.

• Chronic Lymphocytic Leukemia (CLL): The company is also running a Phase 2 study of emavusertib in combination with an approved BTK inhibitor for CLL, aiming to improve outcomes for patients who may become resistant to standard therapies.

Underscoring the significant unmet need in these areas, emavusertib has received multiple Orphan Drug Designations from both the U.S. Food and Drug Administration (for PCNSL, AML, and MDS) and the European Commission (for PCNSL). These designations provide development incentives and highlight the drug's potential to provide a meaningful therapeutic benefit to patients with rare and serious diseases.

Investor Strategy and the Competitive Edge

The participation of seasoned investors like Nantahala Capital and Stonepine Capital Management is telling. Nantahala is known for its research-intensive, fundamental-driven approach to small- and mid-cap equities, while Stonepine has a long track record of successful investments in the healthcare sector. Their investment signals a belief that Curis’s focused strategy and novel science could yield significant returns.

This strategy hinges on differentiating emavusertib in a competitive landscape. In the IRAK4 inhibitor space, many competitors, such as those being developed by Kymera and Gilead, are focused on inflammatory diseases. Curis’s application of an IRAK4 inhibitor in oncology, particularly as part of a dual-acting molecule, carves out a unique niche.

Meanwhile, the FLT3 inhibitor market, dominated by drugs like Astellas's Xospata, is a growing multi-billion dollar space. However, drug resistance remains a major challenge. Emavusertib’s potential to treat patients who have failed other FLT3 inhibitors, combined with its additional IRAK4 mechanism, could position it as a vital second-line or combination therapy, addressing a critical gap in the AML treatment paradigm.

By targeting high-need, difficult-to-treat cancers—many with orphan designations—Curis has built a development plan that is attractive to specialized investors. The new financing provides the necessary resources to execute this plan, moving emavusertib closer to potentially becoming a new standard of care for patients with few remaining options.