Kestrel's $1.45 billion AbbVie Deal, FDA Approves First Ever PROTAC, and Werewolf Breaks Arsenal Lease.

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Watertown newcomer Kestrel Therapeutics, headquartered at the Arsenal on the Charles, announced that they had successfully dosed the first patient in their phase 1 clinical trial evaluating KST-6051, a small molecule pan-KRAS inhibitor. KRAS mutations occur in around 25% of all tumors and are major driver of a number of different subtypes of cancer, including between 85% and 90% of pancreatic cancer cases. Multiple different KRAS mutations can drive tumor formation, and there are currently only FDA-approved therapies for certain KRAS mutants. Kestrel describes KST-6051 as a “pan-KRAS” inhibitor because it is designed to target all KRAS mutants in both their active and inactive states, broadening its potential effectiveness.

In the same statement, Kestrel announced a deal with AbbVie that includes the option for AbbVie to buy the company. Under the deal, AbbVie will provide funding for the KST-6051 program, and if the program hits certain milestones, could purchase Kestrel. The total deal, including the undisclosed upfront payment, milestone payments, and purchase payments is valued at up to $1.45 billion.

Other deals: Windgap Medical announced the next phase in their big pharma collaboration using their OneMix program.

The FDA announced its first ever approval of a heterobifunctional degrader (PROTAC), Arvinas and Pfizer’s Veppanu (vepdegestrant), for the treatment of advanced breast cancer. While Arvinas is not head quartered in Watertown, the approval of their PROTAC provides regulatory clarity for one of Watertown’s emerging technology clusters. As we mentioned in our things to look for in 2026, At least six Watertown companies: C4 Therapeutics (who is also in a clinical trial collaboration with Pfizer), Foghorn Therapeutics, Kymera Therapeutics, Treeline Biosciences, and Entact Bio are developing PROTACs or other therapies based on targeted protein degrader mechanisms. Had Veppanu been delayed or rejected, it could have greatly increased the uncertainty of this cluster’s future, but instead it now provides a roadmap to approval for the companies. While Arvinas now has the distinction of owning the first ever FDA approved PROTAC, they do not intend to commercialize it themselves, opting to find a commercialization partner instead. Fierce Pharma has more details on the approval.

As reported previously, Werewolf Therapeutics, headquartered at the Arsenal on the Charles, has run low on cash and is seeking strategic alternatives to advance their disease platform. After laying off 65% of their staff in February, the company recently announced that Jazz Pharmaceuticals was purchasing their JZP898 program for $21 million. Werewolf had previously entered into a collaboration and license agreement with Jazz to commercialize JZP898, but is now selling the program outright. Werewolf used funds from the sale to pay off short term loan debt. The company also announced they had terminated their lease at 200 Talcott Avenue, (next to the 100 Talcott space recently leased by CAMP4 Therapeutics), and would be vacating the space no later than October 31 of this year.

Quintara Biosciences, a DNA sequencing and synthesis company, is opening a branch at 65 Grove Street.

Rhine Biosciences, a cell line engineering service provider company, opened at Cambridge Scientific labs.

Diagonal Therapeutics announced the appointment of Jonathan Piazza as Chief Financial Officer

Remix Therapeutics announced that Lori Roadcap joined as Vice President of Companion Diagnostics.

That’s all the news for now!