Roquefort Therapeutics PLC (LSE:ROQ) has agreed to sell its subsidiary, Lyramid, in a deal that will give the company a significant stake in a clinical portfolio led by an experienced team.
The London-listed biotech group signed a binding share purchase agreement with Pleiades Pharma that values the business at $10.8 million.
The payment will be in the form of Pleiades shares, with the potential for some upfront cash once the transaction is completed. The deal is expected to close by June 30.
Pleiades owns the commercial rights to two drug programmes: PapMV, a nanoparticle-based therapy designed to boost immune defences, and S100A9, a protein therapy aimed at improving cancer immunotherapy.
Lyramid, which Roquefort acquired in 2021, holds patents for treatments targeting Midkine, a protein linked to cancer and inflammatory diseases.
Roquefort has since expanded Lyramid’s portfolio, developing mRNA and oligonucleotide-based therapies and advancing them through pre-clinical trials.
Pleiades’ lead programme, PapMV, has completed an early-stage trial in Canada, where it was tested as an immune booster alongside a flu vaccine. The therapy has also shown promising results in pre-clinical studies for cancer and infectious diseases, including Covid-19.
"Through the sale of Lyramid we gain a material share in an exciting clinical portfolio being developed by a highly experienced team," said CEO Ajan Reginald.
"This transaction validates our strategy to develop novel programs and realise value through licensing and trade sales."
Roquefort said it would update shareholders on the progress of the transaction in due course.