Varian Biopharmaceuticals, a Naples-based private precision oncology company developing novel therapeutics for cancer treatment, is set to become a publicly-traded company following a merger with SPK Acquisition Corp., company officials announced. Approved by the board of directors of both companies, the transaction is expected to close in the second quarter of 2022.

Varian Bio specializes in using DNA testing to look for genetic mutations of unique tumors with hopes of more targeted treatment recommendations with therapies designed to fight specific tumor types. It is developing a high-potency, specific atypical protein kinase C iota (aPKCi) inhibitor that has the potential to be among the top treatments for various oncology indications with an initial focus on basal cell carcinoma and molecularly-targeted solid tumors.

Varian Bio CEO Jeffrey B. Davis said the merger, which makes it the surviving entity and a wholly-owned subsidiary of SPK, will provide needed capital to further the development of proprietary, anti-cancer targeted therapies. “Targeted, small-molecule protein kinase inhibitors have been one of the most clinically successful classes of cancer drugs over the past 20 years, and we are excited by the opportunity to progress our novel candidates toward human clinical trials,” Davis said.

The cash proceeds from the transactions are expected to fund manufacturing, pre-clinical and IND-enabling toxicology studies and human clinical studies for an aPKCi inhibitor. This will include the continued development of VAR-101, a topical formulation of its lead aPKCi compound, for the treatment of basal cell carcinoma in addition to the development of VAR-102, an oral formulation for the treatment of solid malignancies. 

The combined company will be led by existing management from Varian Bio, including Davis and chief marketing officer Dr. Jonathan Lewis. It will be listed on the Nasdaq under the ticker VBIO.