AlzeCure Pharma enters an out-licensing and collaboration agreement with QuantumCell ApS for the NeuroRestore ACD856 project
Martin Jönsson CEO And Johan Sandin CSO AlzeCure Pharma
AlzeCure Pharma enters an out-licensing and collaboration agreement with QuantumCell ApS for the NeuroRestore ACD856 project
AlzeCure Pharma AB (publ) (“AlzeCure”) (FN STO: ALZCUR), which develops small-molecule drug candidates for CNS diseases with a focus on Alzheimer’s disease and pain, announced today that the company has entered into an out-licensing and collaboration agreement with QuantumCell ApS, a Danish tech-enabled biotech company, regarding the global rights to AlzeCure’s Alzheimer’s platform NeuroRestore, including the leading drug candidate ACD856. AlzeCure will receive an total upfront payment of USD 12 million, of which USD 5 million constitutes a direct investment in AlzeCure, at a 30% premium to the average share price of SEK 3.78 for the last 10 trading days. Furthermore, the agreement contains set development and commercial milestone payments, as well as tiered single-digit to low double-digit royalties on sales. The total deal value, excluding royalty payments, exceeds USD 2.2 billion.
NeuroRestore ACD856 is a small-molecule positive modulator of both NGF/TrkA and BDNF/TrkB mediated signaling (Trk-PAM) that has been shown in preclinical studies to enhance communication between neurons and improve cognitive function, including learning and memory functions. The drug candidate, which is in clinical development, has in previous preclinical studies shown that it has neuroprotective, anti-inflammatory and disease-modifying effects in several preclinical models. The unique pharmacological mechanism of NeuroRestore enables multiple indications, such as Alzheimer's and Parkinson's disease, but also depression.
“With the positive clinical results that we previously obtained with ACD856, as well as the preclinical results that support both cognitive enhancing abilities, neuroprotective as well as potent antidepressant effects, this is a very innovative and promising drug candidate for a wide range of indications,” said Johan Sandin, Chief Scientific Officer at AlzeCure Pharma.
The acquiring party, the Danish biotech QuantumCell is engaged in pharmaceutical development.
“The outlicensing and collaboration agreement with QuantumCell is another important milestone for AlzeCure. This first-in-class Trk-PAM drug project has been developed from idea to clinical phase in-house and shows the capabilities within AlzeCure. With this agreement we see the opportunity for the project’s assets to earlier reach and benefit several different patient groups,” said AlzeCure Pharma’s CEO Martin Jönsson.
The transaction is subject to customary closing conditions, including approval by Swedish and Danish authorities under foreign direct investment regulations.
Advisors
ABG Sundal Collier has acted as financial advisor to the Company in connection with the transaction. Cirio Law and Synch Law have acted legal advisors.