This will allow the newly independent group to secure independent funding to accelerate the accelerated development of the StemPrintER genomic test, the group said. It will also ensure the demerged entity can focus solely on the personalised medicines market.
Tiziana said its shareholders would benefit from holding shares in both Tiziana, which has a rapidly developing drug portfolio while realising the “standalone value” of StemPrintER operation as it progresses through its own development milestones.
Last week, the drug developer’s chief executive said the StemPrintER technology has the “potential to become an essential prognostic tool” in the fight against breast cancer.
Kunwar Shailubhai’s comment followed the release of a scientific abstract ahead of a poster discussion session at the American Society of Clinical Oncology’s (ASCO) virtual conference being held later this month.
This poster showed the stem cell biology-based genomic tool had “greater refinement [than] and superiority [to]” than the current market leader, Oncotype DX, in delivering prognostic information on women with ER+/HER2- form of breast cancer.
The results were compiled by the European Institute of Oncology in Milan in collaboration with the Royal Marsden Hospital and Queen Mary University in London.
On Friday, Tiziana said the results of the trial and the progress made “substantiate the viability of StemPrintER as having the potential to be a standalone business”.
“The board is taking the necessary preliminary steps in preparation for a potential spin-out, including the incorporation of a new subsidiary to hold the relevant assets,” it added.
“The company will also put proposals to shareholders at the annual general meeting to obtain the approval necessary for a capital reduction which will be required to implement the demerger.”