Cancer drug discovery and development business Sareum Holdings Plc (LON:SAR) has picked up a second milestone payment from the recent licensing agreement for its Chk1 inhibitor technology.
A US$2mln fee has become payable as a result of the transfer of the two ongoing Phase 1 clinical trials to Sierra Oncology, the new name for ProNai Therapeutics the company that agreed the licensing deal last year.
Under an arrangement with Cancer Research Technology and the CRT Pioneer Fund, Sareum is entitled to 27.5% of all payments arising from the Chk1 licence agreement.
so, Sareum will receive US$550,000 of this latest payment, while a further £200,000 will be returned as it is part of an unspent trial funding commitment.
Tim Mitchell, Sareum’s chief executive, said: "We are delighted that the first milestone event from this agreement has been reached.
This is a useful addition to our cash position, following the receipt of £1.5 million as our share of the US$7 million up-front payment announced in September."
Further payments up to US$319mln are due if the drug passes all future milestones while Sierra will pay high single to low double digit royalties on the net sales of any product successfully developed.
Sareum’s ChK1 or checkpoint kinase 1 inhibitor is designed to prevent cancer cells from multiplying by attacking its faulty DNA, meaning the cancer self-destructs.
The group sees potential for synergy between standard cancer therapies - such as radio- or chemotherapy - and checkpoint inhibitors as a combination therapy.
Shares rose 20% to 1.02p.