Medicus Pharma (NASDAQ:MDCX) has agreed to acquire Antev, a UK-based drug developer working on treatments for prostate conditions, in a share-based deal that could be worth up to US$65 million in future milestone payments.
Under the terms of the agreement, Antev shareholders will receive 2.67 million Medicus shares, equivalent to around 17% of the enlarged company, and worth $7.7 million at current prices.
Additional payments will be tied to regulatory milestones such as United States Food and Drug Administration (FDA) Phase 2 and New Drug Application approvals.
The upfront shares will be subject to a staggered nine-month lock-up and a three-year voting agreement in favour of Medicus management.
Antev is developing a drug called Teverelix, a next-generation gonadotropin-releasing hormone (GnRH) antagonist. This class of drugs blocks a hormone that signals the production of testosterone, which is often used to treat advanced prostate cancer.
Unlike older GnRH agonists, which cause an initial surge in testosterone levels before suppressing them, antagonists act more quickly and may carry a lower risk of cardiovascular side effects.
Teverelix is being positioned for two indications. One is for men who have experienced acute urinary retention (AUR) due to an enlarged prostate, a condition that can lead to sudden and painful inability to urinate.
A Phase 2b trial approved by the FDA will recruit 390 patients to test whether Teverelix can prevent recurrence.
The study targets a large and largely unmet clinical need, with nearly one million AUR cases reported annually in the United States, around 85% in men over 60.
Roughly 30% of these patients experience a second episode within six months, creating what Antev estimates to be a US$2 billion annual market opportunity.
The second program focuses on advanced prostate cancer in patients with high cardiovascular risk, a group for whom standard hormone therapies can be problematic.
A smaller, open-label Phase 2b study will enrol 40 participants to evaluate the safety and efficacy of Teverelix in this population.
If successful, the drug could become the first hormone therapy specifically approved for prostate cancer patients with pre-existing heart conditions, a market Antev estimates could exceed US$4 billion annually in the US alone.
The transaction is expected to close before the end of August, subject to regulatory approvals and approval by Antev shareholders.