Roquefort Therapeutics PLC (LSE:ROQ) shares, which initially jumped about 14% on Monday morning, reversed course to fall 17% after investors reacted to mixed news on a licensing deal and a delayed sale agreement.
The biotech group announced it had out-licensed its MK Cell patents to Pleiades Pharma in a deal worth up to $25 million in milestone payments, plus a 1.5% royalty on future global sales.
The agreement follows plans to restructure Roquefort’s Midkine assets into a separate subsidiary, Midkine Investments, to preserve value for existing shareholders.
However, sentiment cooled after market makers reacted negatively to a delay to the longstop date for the $10.8 million sale of its Lyramid unit to Pleiades, which has been pushed back three months to 31 January.
Pleiades is still finalising a fundraising round with Gulf investors, delaying completion but leaving the sale price unchanged.
The update reassured the deal remained intact, albeit the timetable had been amended, yet the City's price setters appeared cautious over Pleiades’ financing progress.
Mid-morning, the stock was off 0.32p at 1.53p.