With first drug trial underway, OnKure inks merger with Reneo Pharma to go public

BOULDER — Leadership with OnKure Inc., a Boulder precision oncology company, and California-based Reneo Pharmaceuticals Inc. (Nasdaq: RPHM) have agreed to a merger that would take OnKure public and provide a capital infusion as the first clinical trial for its leading drug candidate is underway. 

Under terms of the all-stock deal expected to close this year, the combined company will be called OnKure Therapeutics and will focus on OnKure’s existing drug pipeline, highlighted by OKI-219, a selective PI3K alpha H1047R inhibitor for the treatment of certain types of breast cancer that began clinical trials in February. 

“We are pleased to announce our proposed merger with Reneo Pharmaceuticals, allowing us to create a publicly traded company focused on advancing OnKure’s lead, mutant-specific programs targeting PI3Kα in breast cancer. This opportunity comes at an important time for OnKure as we recently initiated our PIKture-01 trial of OKI-219 and expect early clinical data in the fourth quarter of this year,” said OnKure CEO Nicholas Saccomano, who will lead the merged organization.

The combined company will remain headquartered in Boulder and will trade on the Nasdaq exchange under the OKUR ticker symbol, the companies disclosed to regulators and investors on Monday morning. 

“In connection with the transaction, Reneo Pharmaceuticals has entered into a subscription agreement for a $65 million private investment in public equity (PIPE) financing expected to close concurrently with the closing of the merger, with a group of institutional investors,” the companies said. 

The merger is contingent upon Reneo, which historically focused on developing treatments for rare genetic mitochondrial diseases, remaining publicly traded and having at least $55 million in cash on hand, excluding the PIPE financing, prior to closing, which must be approved by shareholders of both companies. 

With $120 million in cash, the combined company’s financial runway is expected to be late 2026. 

OnKure, headquartered at 6707 Winchester Circle in the Gunbarrel neighborhood of northeast Boulder, raised $3.26 million in a Series A-1 investment in 2020, a $55 million in a round of Series B fundraising in 2021 and a $54 million Series C round last year. 

When the deal is complete, pre-merger shareholders of OnKure will own 69% of the combined venture and pre-merger Reneo shareholders will own the remainder. 

“Following a thorough evaluation of strategic alternatives, the Reneo board of directors and management team believe that this anticipated transaction represents a compelling opportunity to deliver shareholder value as the OnKure team advances their PI3Kα inhibitors,” Reneo founder and executive chairman Mike Grey said in a prepared statement. “OnKure has an experienced team of drug developers, and we are excited about the potential for OKI-219 to become a meaningful treatment option for patients suffering from breast cancer.”

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