27th Sep 2016 11:13
LONDON (Alliance News) - Sareum Holdings PLC Tuesday said its co-investment partner the CRT Pioneer Fund has licensed exclusive and worldwide rights to its cancer drug candidate CCT245737 to NASDAQ-listed ProNAi Therapeutics Inc.
Under this agreement an immediate upfront payment of USD7.0 million is due to the co-investment partners, with an additional fee of up to USD2.0 million payable on the transfer of two ongoing phase I clinical trials to ProNAi.
Additional payments of up to USD319.5 million may become payable on the achievement of some milestones, and ProNAi will also owe high single to low double digit royalties on net sales of any product successfully developed.
Sareum is entitled to 27.5% of these payments, and will therefore receive USD1.9 million of the upfront payment, and potential future milestones of up to USD88.4 million.
Additionally, GBP795,000 in funds committed to the development programme by Sareum will be returned.
"This is a major achievement for our lead candidate as well as for Sareum. Starting with the initial discovery, we have contributed financially and scientifically to the ongoing development of the programme into clinical trials. The returns from this research investment will be realised in this licence agreement, validating our strategy and business model," said Chief Executive Officer Tim Mitchell in a statement.
Shares in Sareum were up 35% at 0.845 pence Tuesday, shortly after the announcement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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