Evgen Pharma PLC (AIM:EVG) has signed an exclusive option to license novel sulforaphane analogues that may have the potential to be developed into products to broaden its drug pipeline.
The company has agreed a memorandum of understanding over an option to license second-generation sulforaphane analogues synthesised by trio of Spanish research institutions, subject to a fixed evaluation period.
Evgen said the analogues have the potential for differentiation from its lead product, SFX-01, in terms of product formulation and may also have the potential for differential activity against targets that it is pursuing.
As such, the company said they could constitute follow-on and/or alternative products that would expand its development and partnering opportunities.
Dr Huw Jones, chief executive of Evgen, said: “If differentiation is demonstrated in the laboratory, we then have considerable potential to target diseases where one of the key molecular targets for sulforaphane is more relevant than others, enhancing our pipeline substantially.”
The institutions are the University of Seville, Consejo Superior de Investigaciones Científicas (CSIC) and the Institute of Biomedicine of Seville.
Evgen is currently screening analogues from an existing license from the University of Seville and CSIC against relevant targets, over which there is a separate option.
If the new option is exercised, it would substantially expand Evgen's preclinical pipeline of sulforaphane analogues.
Broker Finncap said the option agreement “should be seen as further evidence of Evgen building a broad portfolio of proprietary sulforaphane analogues that should ensure long-term value-creating opportunities for shareholders.
Analysts make no changes to forecasts and reiterated their target price of 18p, versus Evgen shares which were up 7.5% to 5.06p by midday.
** Adds broker comment and share price**