Sierra Oncology (NASDAQ:SRRA), which is developing a novel checkpoint kinase 1 inhibitor originally discovered by Sareum Holdings PLC (LON:SAR), said it is continuing to seek non-dilutive development support or funding for its lead development candidates.
Having announced earlier in the year that it was looking for new ways of funding for its SRA737 candidate licenced from Sareum, Sirerra said in its second-quarter update that it may be forced to focus on its other products if it cannot secure suitable funding.
“The can be no assurance that we will successfully obtain non-dilutive development support or obtain the funding or support necessary to advance” the candidates or obtain such funding or support on commercially reasonable terms.
“If we are unable to obtain such funding or support, we may need to cease development of these product candidates,” Sierra said.
Sareum is eligible to receive 27.5% of a US$7.5mln milestone payment upon the dosing of the first patient in the first Phase 1 trial of SRA737 in the United States, and a payment of US$12mln upon the dosing of the first patient of a randomized Phase 2 trial.
Sierra said it was looking to "renegotiate these milestone payments or raise additional capital", noting that if it breaches any of the obligations within the milestone agreements, or use the intellectual property licensed to us in an unauthorized manner, it may be required to pay damages and lose the licence.