Shares in Sareum Holdings PLC surged away from recent three-year lows after the copany revealed that it will soon receive a US$137,500 cash payment after co-development partner, the CRT Pioneer Fund (CPF), signed a development and commercialisation licence with a US biopharma company.
The licence agreement for SRA737, a Chk1 inhibitor developed in collaboration with several cancer research-related organisations that has shown promising safety and efficacy in clinical trials, includes an immediate upfront payment of US$0.5 million to CPF, of which Sareum is entitled to receive 27.5%.
An additional fee of up to US$1.0 million cash and 500,000 shares from the privately owned US biopharma company may also be payable within 12 months, with additional payments of up to US$289 million potentially payable to CPF based on development, regulatory and commercial milestones.
With Sareum entitled to receive 27.5% of any future payments payable by the licensee company, including shares, chief executive Tim Mitchell said these payments have the potential to support the company's development pipeline.
Shares soared 26.71% higher to 75.39p.