The chief executive of drug discovery and development firm Sareum Holdings Plc (LON:SAR), Dr Tim Mitchell, tells Proactive that the recent licensing deal the company signed with ProNAi proves that its business model works.
“We validated our business model, in that we’ve taken our products into clinical trials and executed licensing deals and that’s what we’ve done,” Mitchell says.
The agreement will see Sareum receive US$1.9mln upfront, future milestone payments of up to US$88.4mln, as well as some royalties from any product that is successfully developed as a result.
Mitchell adds: “Of course, the cash that comes in from the deal is very handy too.”
He says that now that deal is completed, the company can kick on with the development of its other products.
“We can really focus our spending now on TK2, both on the autoimmune disease side and the cancer side, and then look for other assets to replace Chk1.”