Shares in Roquefort Therapeutics PLC (LSE:ROQ, OTCQB:ROQAF) rose 24% following the signing of a term sheet to out-license its Midkine antibody portfolio to Dubai-based PDC. The deal includes an upfront payment of $10 million.
Roquefort will also receive a non-dilutive equity stake in a special purpose vehicle (SPV) that PDC will use to develop the Midkine antibodies. The exclusive worldwide license will last for 20 years.
PDC aims to complete a phase I clinical trial within three years. Upon successful completion, the SPV will be sold, with Roquefort earning around 24% of the sale proceeds, potentially worth up to $50 million based on similar deals.
"PDC is a great partner with a strong track record," said CEO Ajan Reginal. "This deal validates our business model and highlights our deal-making capabilities."
In morning trading the stock was up 1.06p at 5.51p.