OncoQuest sells assets to Dual for $300 million

Canadian biotech Quest PharmaTech (TSX-V: QPT) saw its shares tumble 15.4% to C$0.11 by close of trading on Wednesday, after the company revealed that its subsidiary, OncoQuest, was divesting assets.

Specifically, OncoQuest has entered into a definitive agreement to sell its clinical and pre-clinical immunotherapy development assets to South Korea’s Dual Industrial (Kosdaq: 078590) in exchange for $300 million in a combination of Dual common stock and Dual perpetual convertible bonds.

Dual will also be responsible for all the cost of clinical and non-clinical development of the immunotherapy assets after the execution of the asset transfer agreement until a US based subsidiary is set-up to oversee all of the product and clinical development functions.