Expanded AI Collaboration Advances Optimization of Cancer Drug Candidates

1. Rakovina Therapeutics Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Rakovina Therapeutics Inc. (RKV:TSX.V) has expanded its partnership with Variational AI to advance the optimization of its kt-5000 series, a portfolio of small-molecule ATR (ataxia telangiectasia and Rad3-related) inhibitors. The announcement, made on January 8, builds on an existing collaboration between the two companies and focuses on the use of generative artificial intelligence to accelerate lead optimization and selection of clinical candidates.

Under the terms of the new agreement, Variational AI will use its Enki generative AI platform to identify and optimize lead drug candidates, while Rakovina will maintain full control over candidate selection and preclinical development. According to Rakovina, this iterative approach is intended to significantly reduce both time and cost in early-stage drug discovery, with the stated goal of identifying clinical candidates in a matter of months rather than years.

The kt-5000 series targets ATR, a critical regulator of the DNA damage response that enables cancer cells to survive replication stress. Rakovina's preclinical research has already produced compounds with dual ATR/mTOR activity and demonstrated central nervous system (CNS) penetration, as presented at the Society for Neuro-Oncology annual meeting.

Jeffrey Bacha, Executive Chairman of Rakovina Therapeutics, stated in the news release, "This expanded collaboration with Variational AI enables a highly focused, AI-driven refinement of kt-5000 compounds identified for further evaluation, with particular attention to potency, selectivity, and CNS penetration."

Handol Kim, CEO of Variational AI, added, "With this expanded collaboration, we are now applying Enki to exploit these novel leads through local chemical search to efficiently perform lead optimization and enable Rakovina to get to human trials faster."

 AI and Precision Medicine Drive Innovation in Biotech

In a January 9 report, The Cancer Letter detailed how AI-powered composite biomarkers have emerged as a transformative approach for immuno-oncology decision-making. These tools aggregate complex proteomic data into streamlined, actionable scores, helping clinicians personalize immunotherapy regimens based on each patient's biological response. Michal Harel, PhD, Vice President of Translational Medicine at OncoHost, explained, "Proteins are the immune system's real-time dial tones. Measuring enough of them at once reveals hidden interactions and patterns that DNA or single-protein assays simply can't capture." Yehonatan Elon, PhD, Chief Technology Officer at OncoHost, noted that such tools are quickly becoming integral to practice, stating, "When clinicians see a broad host-response signal distilled into a traffic-light output, it becomes a decision layer they don't want to practice without."

Beyond treatment selection, artificial intelligence is also being applied to predict safety outcomes. The Cancer Letter highlighted emerging models designed to forecast immune-related adverse events before therapy begins. These tools aim to guide clinicians in adjusting treatment plans before toxicity occurs, contributing to what Ofer Sharon, MD, called "genuine precision care" by integrating both efficacy and safety into early decision-making.

Meanwhile, merger and acquisition activity has intensified across the sector. CNBC reported on January 7 that the biotechnology industry had experienced a sharp rise in dealmaking toward the end of 2025, driven in part by a looming wave of patent expirations among blockbuster drugs. With up to US$173.9 billion in annual sales at risk due to the so-called "patent cliff," pharmaceutical companies have increasingly turned to biotech assets to replenish pipelines. The report described the environment as "a competitive landscape for the best assets," as biotech firms bring innovation that pharma needs to maintain revenue growth.

Capital markets have also taken notice of the sector's shift toward execution-focused biotech innovation. According to a January 10 report from BioBuzz News, firms like Stifel observed a disciplined resurgence in seed-stage biotech investing. Rather than casting a wide net, investors in 2026 have prioritized early-stage companies that demonstrate "execution readiness" and a clear path to value creation. The report explained that this environment has made capital available, but only for companies that can clearly articulate "why they win."

Stifel's 2026 outlook also pointed to structural shifts in biotech that may drive sustained momentum. These included increased R&D productivity among emerging companies and the broader validation of scalable innovation models across large therapeutic areas. The report noted that recent trends reflected not a temporary recovery but "the early stages of a multi-year expansion" in biotech.

Expert Analysis Highlights Promise in Rakovina's AI-Generated Drug Candidates

In a December 4 research report, Dr. Douglas Loe of Leede Financial Inc. examined the preclinical data Rakovina Therapeutics Inc. presented for two of its ATR inhibitors, Compound A and Compound C. Both compounds were identified through the Enki generative AI platform developed by Rakovina's partner, Variational AI. According to Loe, the biochemical data revealed that the compounds exhibited "comparable ability to inhibit ATR's kinase in biochemical assays" when evaluated against other known drugs in the same class.

Loe wrote that both compounds also demonstrated selectivity in targeting other enzymes within the PIKK (phosphatidylinositol 3-kinase-related kinase) family, including mTOR, an immune-relevant protein. He emphasized that, like other advanced inhibitors in development, Rakovina's compounds showed "little to no inhibition of other protein kinases," indicating a favorable selectivity profile.

Addressing pharmacokinetics, Loe noted that Compound A achieved higher peak plasma and brain concentrations than Compound C, despite equivalent dosing. He added that both compounds had short half-lives of approximately 30 minutes and suggested that "Rakovina might want to address the short half-lives with some sort of extended-release drug formulation technology."

The report also underscored that the dual ATR/mTOR inhibition observed in Rakovina's compounds could present a unique profile worthy of further investigation. Loe concluded that the presented data from the Society for Neuro-Oncology's annual meeting supported continued development of both compounds.

Strategic Progress in Precision Oncology

The expanded agreement builds on a broader effort by Rakovina to use artificial intelligence to streamline oncology drug development. According to the company's investor presentation, both the kt-2000 and kt-5000 series leverage AI technologies to accelerate drug discovery. The kt-5000 program has already synthesized and assessed 43 candidate compounds, with ten demonstrating potent ATR inhibition and several exhibiting dual kinase activity.

Rakovina's use of Enki complements its licensed access to the Deep Docking AI platform, which previously screened 1.6 billion molecules in silico to identify potential leads. The company retains ownership of all drug candidates generated through these collaborations, with oversight from Professor Artem Cherkasov, a recognized leader in AI-driven drug discovery.

As outlined in its Q4 2025 investor deck, Rakovina anticipates further synthesis of ATR inhibitor candidates for preclinical studies in 2026, as well as continued presentations at industry conferences and ongoing discussions with pharmaceutical companies that have expressed interest in its pipeline.

Ownership and Share Structure ¹

Edison Oncology owns 12% of Rakovina Therapeutics.  

Management and Reporting Insiders own 4%, with the top two being Jeffrey Bacha and Alfredo De Lucrezia. 

The rest is friends/family and retail.   

Rakovina Therapeutics recently announced a 10:1 share consolidation, effective on  June 24, 2025.

This means that for every 10 pre-consolidation common shares, shareholders now hold one post-consolidation common share.  

Rakovina Therapeutics Inc. has approximately 21.15 million shares outstanding. Its market capitalization is approximately CA$2.32million. Over the past 52 weeks, its stock price has ranged between approximately CA$0.085 and CA$2.30.