Roquefort Therapeutics PLC CEO Ajan Reginald talked with Proactive's Stephen Gunnion about the binding share purchase agreement with Pleiades Pharma for its wholly-owned subsidiary, Lyramid. The $10.8 million deal includes both shares and cash.
Proactive: Hello, you're watching Proactive. Joining me is Roquefort Therapeutics CEO Ajan Reginald. Ajan, very good to see you again. You've signed a binding share purchase agreement with Pleiades Pharma for your Lyramid subsidiary. You've moved quickly on this deal since announcing it last month. Refresh us about the deal, please.
Ajan Reginald: Absolutely. Good morning. We've been able to move quickly within 30 days. The deal has a total consideration of $10.8 million, which is made up of shares and cash, and it's for the sale of our 100%-owned subsidiary, Lyramid.
Proactive: And of course, you bought Lyramid for £1 million back in 2021. So you've realized a lot of value through that acquisition.
Ajan Reginald: Yes. I think it really validates our model. As you mentioned, we bought it for £1 million and spent about another £1 million developing the assets. We demonstrated the efficacy needed to show that these are strong assets with high potential to become medicines. That value is now being realized by the Pleiades team, who have a strong track record in developing medicines and securing high-value exits.
For Roquefort, this is a great validation of our ability to identify "diamonds in the rough" and develop them to a point where they demonstrate clear value.
Proactive: Tell us about the assets Pleiades will be acquiring through Lyramid and how they will take those forward.
Ajan Reginald: The portfolio includes Midkine mRNA and Midkine SSO, which were developed in-house by Roquefort Therapeutics, along with legacy antibody assets that came with the acquisition of Lyramid.
Proactive: Ajan, you're going to end up with a material stake in Pleiades. Tell us about Pleiades and how significant the stake will be for you.
Ajan Reginald: Certainly. There are three key elements to this. First, the Midkine assets will be developed by Pleiades, and we'll benefit from the upside of that.
More importantly, Pleiades has clinical assets in the PapMV, which already have significant data and value. Our shareholders in Roquefort will realise value as Pleiades advances these assets.
Finally, the Pleiades team has a strong track record of executing deals with big pharmaceutical companies. The portfolio they are assembling is expected to increase in value significantly, which should, in turn, increase the value of our stake in Pleiades.
Proactive: So, Ajan, you're now focusing on developing your MK cell therapy and STAT-6 programs. Would you consider pursuing further licensing deals and trade sales?
Ajan Reginald: Absolutely. This deal allows us to focus on those programs while reducing our cost base, giving us a longer runway. We already received interest in STAT-6 last year, and we fully intend to complete deals for both MK and STAT-6 in the coming year.