Evgen Pharma PLC (AIM:EVG), the clinical-stage drug development company, has announced the termination of its patent and know-how licence agreement with JuvLife Ltd, a division of Juvenescence Ltd.
The agreement covered the use of Evgen's Sulforadex technology for stabilising sulforaphane, the natural plant compound found in cruciferous vegetables such as broccoli, cabbage, cauliflower and kale.
The exclusive rights will revert to Evgen in the fourth quarter, while Evgen will keep an upfront payment already made as part of the deal.
Evgen's CEO, Dr Huw Jones, stated that JuvLife's reorganisation led to the return of the rights, allowing Evgen to focus on more profitable partnerships within the pharmaceutical industry.
Evgen concluded a licensing deal with Stalicla in late 2022 and continues to develop its own oncology programmes.
Jones pointed out that the nutraceutical market, with its lower margins and market saturation, is "significantly less attractive" to Evgen compared to the pharmaceutical market.
Additionally, an Evgen collaborator recently secured a £900,000 non-dilutive grant for researching SFX-01 in glioblastoma, a type of brain cancer.
The company said it continues to work with partner Stalicla on an Autism Spectrum Disorder programme, potentially generating $160.5 million in milestones and double-digit royalties.
As of 31 March 2023, Evgen had £5 million in cash. Without further milestone payments, the current funding runway extends to the fourth quarter of next year, and future Stalica milestones could extend this runway into 2025.