Shares in Roquefort Therapeutics PLC (LSE:ROQ, OTCQB:ROQAF) surged 19% in morning trade following the announcement of a term sheet to sell its subsidiary, Lyramid, to Pleiades Pharma for at least $10 million. The deal includes equity in Pleiades, which focuses on clinical and pre-clinical medicines and could involve upfront cash payments.
Expected to close within 30 days, the agreement would see Roquefort retain a significant equity stake in Pleiades. Completion hinges on Pleiades securing funding and finalising in-licensing transactions.
Lyramid holds intellectual property for Midkine-based therapies, including mRNA, oligonucleotide, and antibody programmes, currently in pre-clinical development. Roquefort acquired Lyramid in 2021 for £1 million and has since expanded its portfolio.
CEO Ajan Reginald said the sale validates Roquefort’s strategy of acquiring, developing, and realising value through trade sales, noting the transaction capitalises on valuation differences between UK private and public biotech sectors.
The stock rose 0.7p to 4.8p.