REG - Roquefort Theraptcs. - Midkine Antibody Licencing Deal

Roquefort TherapeuticsAnnouncement

23/05/2024 07:00

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RNS Number : 6255P  Roquefort Therapeutics PLC  23 May 2024

23 May 2024

 

Roquefort Therapeutics plc

("Roquefort Therapeutics" or the "Company")

 

Midkine Antibody Licencing Deal

 

Roquefort Therapeutics plc (LSE:ROQ, OTCQB:ROQAF), the Main Market listed
biotech company focused on developing first in class medicines in the high
value and high growth immuno-oncology market is pleased to announce the
signing of a term sheet for the out-licensing of its Midkine antibody
portfolio to PDC FZ-LLC ("PDC"), a leading MEA pharmaceutical research and
development organisation.  PDC has a track record of successfully conducting
over 150 clinical trials.

 

Midkine Out-Licensing Transaction

Roquefort Therapeutics has signed a term sheet to grant an exclusive worldwide
license for its Midkine antibody portfolio to PDC FZ-LLC, part of the PDC
group. This is a strategic out-licencing deal in which Roquefort Therapeutics
receives $10M total initial consideration value and a guaranteed share of the
trade sale proceeds on successful completion of Phase 1 clinical trials. PDC
will develop one or more of the Midkine antibodies within a new Special
Purpose Vehicle ("SPV") to complete the Phase 1 clinical trial and then seek a
trade sale of the SPV. The term sheet is non-binding, except for certain
provisions including exclusivity to 31 December 2024. Completion of the
transaction is subject to due diligence and the negotiation of a definitive
licence agreement.

 

A summary of the agreed commercial terms in the term sheet are listed below:

·    Initial consideration value of US$10 million, which includes
non-dilutive equity in the SPV;

·    Exclusive worldwide licence granted to the SPV for 20 years;

·    Within 3 years, PDC to develop at least one of the Midkine antibodies
within the SPV to the completion of a Phase 1 trial and then, upon success, to
complete a trade sale of the SPV; and

·    Roquefort Therapeutics will receive circa 24% from any successful
trade sale proceeds, which if the Phase 1 trial is successful, this 24% is
projected to be worth up to US$50M (gross) based on similar phase 1 trade
sales.

 

Roquefort Therapeutics is now working with PDC to complete due diligence and
has commenced the drafting of the definitive licence agreement. Further
updates will be provided by the Company as this progresses and becomes
binding.

 

Ajan Reginald, Roquefort Therapeutics CEO commented:

"We are pleased to announce this therapeutic licencing deal with an initial
payment which is likely to include $1.25-2.5M upfront and a 24% share of what
is substantial potential upside. PDC is a great partner with a strong track
record of completing clinical trials and we are confident they will accelerate
development of the Midkine antibodies into the clinic. Upon a successful Phase
1 exit, this would create significant returns to the SPV shareholders. We
believe this is a good deal for all parties and it validates our business
model and highlights our deal making capabilities. We expect to conclude this
licensing agreement as soon as possible.

 

In the meantime, we remain focused on completing the other licencing deals
that we are negotiating and look forward to updating the market in due
course."

 

Mohamed Mostafa, CEO of PDC commented:

"PDC is the leading clinical trial organisation in the MEA region with an
excellent track record of completing clinical trials. To date we have
successfully completed more than 150 clinical trials with leading Big Pharma
and Biotech companies. We are encouraged by the Midkine preclinical data from
Roquefort Therapeutics and are delighted to license these Midkine antibodies
and are confident in our ability to successfully complete the Phase 1 trials
which should lead to a trade sale with significant value upside."

 

ENDS

Enquiries:
 Roquefort Therapeutics plc
 Stephen West (Chairman) / Ajan Reginald (CEO)  +44 (0)20 3918 8633

 Hybridan LLP (Joint Broker)

 Claire Louise Noyce                            +44 (0)203 764 2341

 Optiva Securities Limited (Joint Broker)
 Vishal Balasingham / Daniel Ingram             +44 (0)20 3411 1881

 Buchanan (Public Relations)

 Ben Romney / Jamie Hooper / George Beale       +44 (0)20 7466 5000

 

LEI: ‎254900P4SISIWOR9RH34

 

About PDC

PDC was founded in 2011 and provides a full-service end-to-end innovative
solution for Phase I to IV clinical trials and RWE studies in the Middle East
and Africa region. PDC offers direct access to 30+ MEA countries, in line with
global standards and local cultures and regulations. PDC's international
experience, as well as proven track record of more than 150 successful
clinical trials since 2011 provides the assurance that PDC is a reliable
partner for clinical development.

https://pdc-cro.com/ (https://pdc-cro.com/)

 

About Roquefort Therapeutics

Roquefort Therapeutics (LSE:ROQ, OTCQB:ROQAF) is a Main Market listed biotech
company developing first in class drugs in the high value and high growth
oncology segment prior to partnering or selling to big pharma.

 

Roquefort Therapeutics' portfolio consists of five novel patent-protected
pre-clinical anti-cancer medicines.  The highly complementary profile of five
best-in-class medicines consists of:

·    Midkine antibodies with significant in vivo efficacy and toxicology
studies;

·    Midkine RNA therapeutics with novel anti-cancer gene editing action;

·    Midkine mRNA therapeutics with novel anti-cancer approach;

·    STAT-6 siRNA therapeutics targeting solid tumours with
significant in vivo efficacy; and

·    MK cell therapy with direct and NK cell-mediated anti-cancer action

 

For further information on Roquefort Therapeutics,
please visit www.roquefortplc.com (http://www.roquefortplc.com/)
 and @RoquefortTherap on X (formerly Twitter).

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