REG - Sareum Holdings PLC - Development and commercialisation licence SRA737

Sareum HoldingsAnnouncement

02/01/2024 07:00

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RNS Number : 2722Y  Sareum Holdings PLC  02 January 2024

Sareum Holdings PLC

("Sareum" or the "Company")

Development and commercialisation licence for SRA737

Cambridge, UK, 2 Jan 2024 - Sareum Holdings plc (AIM: SAR), a clinical-stage
biotechnology company developing next-generation kinase inhibitors for
autoimmune disease and cancer, today announces that the Company's
co-development partner, the CRT Pioneer Fund ("CPF"), has entered into a
development and commercialisation licence agreement for SRA737 (the "Licensing
Agreement") with a private biopharma company based in the United States (the
"Licensee Company").

Under the terms of the Licensing Agreement, an immediate upfront payment of
US$0.5 million is due to CPF. An additional fee made up of up to US$1.0
million cash and 500,000 shares in the Licensee Company (the "Consideration
Shares") may be payable upon the sooner of 12 months following the signing of
the Licensing Agreement, or the event of the Licensee Company achieving
certain commercial and material financing objectives. A further announcement
regarding any future income, including any Consideration Shares which may be
issued, will be made at the appropriate time.

Additional payments to the aggregate amount of up to US$289 million may become
payable to CPF under the Licensing Agreement, subject to achievement of
certain development, regulatory and commercial milestones which may or may not
be achieved. The Licensee Company will also pay tiered high single digit
royalties to CPF on the net sales of any product successfully developed and
commercialised.

Under the terms of Sareum's co-development agreements with CPF and Cancer
Research Technology Ltd, Sareum is entitled to receive 27.5% of any income
arising from this licensing of the SRA737 programme. Therefore, Sareum is
entitled to receive US$137,500 from the upfront fee payable under the
Licensing Agreement, as well as 27.5% of any future payments payable by the
Licensee Company (including any Consideration Shares received), under the
terms of the Licensing Agreement.

Dr Tim Mitchell, CEO of Sareum, commented: "SRA737 has shown considerable
promise in earlier clinical studies, demonstrating a robust safety profile and
preliminary efficacy, in particular in combination with low dose chemotherapy.
With CPF, we are very pleased a partner has been identified to advance this
exciting molecule into further development and believe this licensing
agreement offers the best path forward for SRA737.

"Sareum is entitled to a share of income from potential development and sales
milestones from this agreement for SRA737 which have the potential to support
Sareum's TYK2/JAK1 development pipeline. The team at Sareum is now focused on
our lead programme, SDC-1801, which is progressing in clinical studies in
Australia, and more broadly on TYK2/JAK1 inhibitors, a class which we believe
has significant potential in autoimmune diseases and cancer."

About SRA737

SRA737 is a clinical-stage oral, selective Checkpoint Kinase 1 inhibitor that
targets cancer cell replication and DNA damage repair mechanisms. It was
discovered and initially developed by scientists at the Institute of Cancer
Research in collaboration with Sareum, with funding from Sareum and Cancer
Research UK.

SRA737 was licensed
(http://www.sareum.com/news/press-releases-and-news/2016/licence-agreement-chk1-inhibitor-cct245737/)
 by CPF to Sierra in September 2016. Sierra progressed SRA737 through Phase
1/2 clinical development and, at the 2019 American Society of Clinical
Oncology (ASCO) Annual meeting, reported
(http://www.sareum.com/news/press-releases-and-news/2019/positive-sra737-data-reported-asco/)
 positive preliminary efficacy and safety data from two clinical trials
evaluating SRA737 as a monotherapy and in combination with chemotherapy.

Following the acquisition of Sierra by GSK in July 2022, primarily for
Sierra's momelotinib myelofibrosis asset, the rights to SRA737 were returned
to CPF in January 2023.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (javascript:void(0);)  (Withdrawal) Act 2018, as amended
by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

- Ends -

 

For further information, please contact:

 Sareum Holdings plc

 Tim Mitchell, CEO                                   01223 497700

 Lauren Williams, Head of Investor Relations         ir@sareum.co.uk

 Strand Hanson Limited (Nominated Adviser)

 James Dance / James Bellman                         020 7409 3494

 Peel Hunt LLP (Joint Corporate Broker)

 James Steel / Patrick Birkholm                      020 7418 8900

 Hybridan LLP (Joint Corporate Broker)

 Claire Noyce                                        020 3764 2341

 Consilium Strategic Communications (Financial PR)

 Jessica Hodgson / Davide Salvi / Stella Lempidaki   0203 709 5700

 

About Sareum

Sareum Holdings (AIM:SAR) is a clinical-stage biotechnology company developing
next generation kinase inhibitors for autoimmune disease and cancer.

The Company is focused on developing next generation small molecules which
modify the activity of the JAK kinase family and have best-in-class potential.
Its lead candidate, SDC-1801, simultaneously inhibits TYK2 and JAK1. SDC-1801
is a potential treatment for a range of autoimmune diseases and has entered
Phase 1a/b clinical development with an initial focus on psoriasis.

Sareum is also developing SDC-1802, a TYK2/JAK1 inhibitor with a potential
application for cancer immunotherapy.

Sareum Holdings plc is based in Cambridge, UK, and is listed on the AIM market
of the London Stock Exchange, trading under the ticker SAR. For further
information, please visit the Company's website at www.sareum.com
(about:blank)

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