Roquefort Therapeutics PLC (LSE:ROQ) has agreed to sell its subsidiary, Oncogeni, to UAE-based Nations Trust Holding for up to $12 million (£9.3 million).
The deal, consisting of an upfront sum and milestone payments, is still at the term sheet stage, meaning both sides have agreed on the key terms but need to finalise a binding agreement within the next 60 days.
Oncogeni owns the rights to two promising biotech assets: Mesodermal killer (MK) cells and STAT-6 siRNA, which are being developed for cancer and immune system treatments.
Roquefort acquired Oncogeni in 2022 for £5 million in shares and has since advanced its development and expanded its patent portfolio.
The proposed sale will provide Roquefort with a significant cash boost, allowing it to focus on other areas of its business.
Nations Trust, a major investment and research group in the UAE, will take full ownership of Oncogeni’s intellectual property and biotech projects.
CEO Ajan Reginald said: "The proposed sale of Oncogeni is an important step towards completing the initial phase of the company's strategy to acquire and develop pre-clinical assets and to then realise value through completing trade-sale transactions.
"We are pleased to be working with such a well-funded and highly resourced partner to take the Oncogeni portfolio into clinical trials, which if successful, will create long term value for the company."
In a recent interview with Proactive, Reginald talked about finding undervalued 'diamonds in the rough' assets and polishing them for sale.
As well as the Oncogeni sale, it is negotiating the £8 million disposal of Lyramid, a business Roquefort acquired for just £1 million.