Roquefort Therapeutics PLC (LSE:ROQ, OTCQB:ROQAF) has signed a term sheet to sell its subsidiary, Lyramid, to Pleiades Pharma for at least $10 million. The deal includes equity in Pleiades and may involve upfront cash payments.
The agreement, expected to be finalised within 30 days, would see Roquefort retain a significant equity stake in Pleiades, a privately held company focused on clinical and pre-clinical medicines.
Completion is subject to Pleiades securing additional funding and completing in-licensing transactions.
Lyramid owns Roquefort’s intellectual property for Midkine-based therapies, including mRNA, oligonucleotide, and antibody programmes, which have reached pre-clinical development.
Roquefort acquired Lyramid in 2021 for £1 million and has since expanded its portfolio.
Pleiades, led by Caroline Fontier, has a history of successful trade sale exits exceeding $750 million.
The term sheet supersedes a previous licensing agreement announced in May last year with PDC-CRO, which will continue as a strategic partner.
Roquefort CEO Ajan Reginald said: "The sale of Lyramid validates our strategy to acquire, develop and then to realise value through licensing and trade-sale transactions.
"This strategy is particularly important in the UK, where private company valuations typically exceed those of UK public biotech entities.
"Through this transaction we will capitalise on this valuation arbitrage and retain upside potential in the Midkine portfolio. Most importantly we gain a share of an exciting clinical portfolio being developed by a highly experienced team."