AI Collaboration Expands to Accelerate Cancer Drug Discovery

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 collaboration with Variational AI to further advance the optimization of its kt-5000 series, a collection of small-molecule ATR (ataxia telangiectasia and Rad3-related) inhibitors. Announced on January 8, the agreement enhances an existing partnership and centers on leveraging generative artificial intelligence to accelerate lead optimization and clinical candidate selection.

Through this expanded arrangement, Variational AI will apply its Enki generative AI platform to focus on optimizing lead candidates identified by the platform, while Rakovina retains full authority over which candidates advance to laboratory testing and further development. According to Rakovina, the AI-driven process is expected to significantly reduce both the time and cost typically associated with early-stage drug discovery, with the aim of identifying clinical candidates in a shorter timeframe than traditional approaches. 

The kt-5000 series targets ATR, a key regulator of the DNA damage response that helps cancer cells survive replication stress. Rakovina's preclinical research has identified compounds that show combined ATR and mTOR inhibition and have demonstrated central nervous system (CNS) penetration, as recently presented at the Society for Neuro-Oncology annual meeting. 

Jeffrey Bacha, Executive Chairman of Rakovina Therapeutics, commented in the announcement, "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 article, The Cancer Letter explored the emergence of AI-powered composite biomarkers as a new tool in immuno-oncology. These technologies consolidate complex proteomic data into actionable clinical scores, offering personalized treatment guidance based on the patient's immune response. Michal Harel, PhD, Vice President of Translational Medicine at OncoHost, noted, "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, CTO at OncoHost, added, "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 optimizing treatment selection, AI is also being used to anticipate safety risks. The Cancer Letter highlighted new models designed to forecast immune-related adverse events prior to treatment, helping clinicians tailor care before toxicities arise. Ofer Sharon, MD, described this as "genuine precision care" that integrates both efficacy and safety into early-stage decision-making.

A January 7 report from CNBC described a sharp rise in biotechnology M&A activity in late 2025, driven by the impending expiration of patents on leading therapeutics. With as much as US$173.9 billion in annual sales at stake, pharmaceutical firms have increasingly turned to innovative biotech assets to replenish their pipelines. The report described this as "a competitive landscape for the best assets."

According to a January 10 update from BioBuzz News, capital markets have responded to this trend with renewed interest in early-stage biotech. Citing data from Stifel, the report indicated a more disciplined approach to seed-stage investing in 2026, with investors prioritizing startups that show execution readiness and clear paths to value creation. Companies that can clearly articulate their competitive advantage have been more successful in attracting capital.

Stifel's broader 2026 outlook also pointed to improved R&D efficiency and scalable innovation models as signs of a structural upturn. The report concluded that the sector appeared to be in "the early stages of a multi-year expansion."

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

In a December 4 research report, Dr. Douglas Loe of Leede Financial Inc. reviewed Rakovina's preclinical data for its ATR inhibitors, Compound A and Compound C, both generated via the Enki AI platform. Loe stated that the two compounds exhibited "comparable ability to inhibit ATR's kinase in biochemical assays" when compared to established candidates in the same drug class.

The report also noted that both compounds showed favorable selectivity, targeting key enzymes within the PIKK family, including mTOR, while demonstrating "little to no inhibition of other protein kinases." Loe highlighted that Compound A achieved higher peak plasma and brain concentrations than Compound C, though both had short half-lives of about 30 minutes. He suggested Rakovina may explore extended-release formulations to enhance duration of activity.

Loe concluded that the presented data, shared at the Society for Neuro-Oncology's annual meeting, supported continued development of both compounds and warranted further investigation of their dual ATR/mTOR activity profile.

Strategic Progress in Precision Oncology

According to Rakovina's Q4 2025 investor presentation, the company's AI-enabled discovery platform includes both the kt-2000 and kt-5000 series. As of the latest update, the kt-5000 program had synthesized 43 compounds, with ten exhibiting strong ATR inhibition and several showing dual kinase activity.

The company's efforts are supported by exclusive access to the Deep Docking AI platform, which has screened over 1.6 billion molecules to identify promising candidates. Rakovina maintains full rights to all compounds developed through its AI collaborations and continues to refine its pipeline under the guidance of scientific advisor Professor Artem Cherkasov.

Looking ahead, the company plans to synthesize additional ATR inhibitor candidates for preclinical studies in 2026 and continue its presence at key industry conferences while advancing discussions with potential pharmaceutical partners.

Ownership and Share Structure¹

Edison Oncology currently holds a 12% stake in Rakovina Therapeutics. Management and reporting insiders own 4%, with Executive Chairman Jeffrey Bacha and Alfredo De Lucrezia representing the top individual shareholders. The remainder is held by friends, family, and retail investors.

In June 2025, Rakovina completed a 10-to-1 share consolidation. Shareholders now hold one post-consolidation common share for every ten pre-consolidation shares previously held.

The company has approximately 21.15 million shares outstanding, with a market capitalization of about CA$2.32 million. Over the past 52 weeks, its share price has ranged between CA$0.085 and CA$2.30.