Sareum sinks as FLT3+Aurora kinase program partner pulls out

Shares of UK-based Sareum Holdings (AIM: SAR) closed down more than 30% at 1.75 pence on Friday, after the specialist cancer and autoimmune diseases drug developer reported that the licensing partner for its FLT3+Aurora kinase program has decided not to exercise its option to continue the development of the program.

Sareum received formal confirmation of the licensee’s decision yesterday. Worldwide rights to the FLT3 program, as well as data relating to progross made by the licensee, will therefore revert to Sareum, which has not disclosed the name of its Chinese partner.

As announced on March 26, 2020, the previously de-prioritized FLT3 program was licensed to a China-based specialty pharma company for which Sareum received an upfront payment of approximately £50,000 ($67,700). While the licensee has improved the bioavailability of the lead compound in the FLT3 program, it has been unable to achieve the level needed to trigger the milestone under the licensing agreement and, as a result, it has decided to terminate the licence agreement and relinquish its rights to the FLT3 program, with no further payments being due to Sareum.