Sareum partner CPF inks deal to out-license SRA737

UK-based biotech Sareum Holdings (AIM: SAR) saw its shares gain 18% to 70.00 pence by early afternoon after it announced that is co-development partner, the CRT Pioneer Fund (CPF), has entered into a development and commercialization licence agreement for SRA737 with a private biopharma company based in the USA.

Under the terms of the accord, an immediate upfront payment of $0.5 million is due to CPF. An additional fee made up of up to $1.0 million cash and 500,000 shares in the licensee company may be payable upon the sooner of 12 months following the signing of the licensing agreement, or the licensee company achieving certain commercial and material financing objectives.

Additional payments of up to $289 million may become payable to CPF under the accord, 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 commercialized.