Shares in Sareum Holdings PLC (AIM:SAR) fell 10% after the company revealed the termination of a key licensing deal for its cancer treatment candidate, SRA737.
Sareum’s partner, the CRT Pioneer Fund (CPF), received notice on December 26 from a US-based licensee to end their agreement for the clinical-stage cancer drug.
The decision triggers a 90-day notice period, after which the rights to SRA737 will revert to CPF on March 27.
Sareum plans to meet CPF to discuss options for securing a new licensee for the drug, which targets cancer cell replication and DNA repair mechanisms.
After an initial drop to 22p, the shares recovered their poise to change hands for 24.3p, down 2.7p.