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Cizzle Biotechnology Holdings PLC - London-based biotechnology firm - Notes positive results for St George Street Capital in its Phase II Arcadia study with AstraZeneca, which tested the effectiveness of the AZD1656 treatment for diabetic patients with Covid-19. AZD1656 is a glucokinase activator which has been shown to reduce blood glucose for up to 4 months in humans. The company says the trial showed "strong trends in favour of AZD1656 with respect to mortality" and raised no safety concerns for the therapy. Expects St George Street's plans to seek potential licencees and fundraise for further clinical trials of the AZD1656 treatment.
Says St George Street has agreed to grant the company potential future royalty payments of up to GBP5 million, plus payments for the companion diagnostic, for the commercialisation of AZD1656. Previously, Cizzle signed a memorandum of understanding with St George Street, including an agreement to co-develop a companion diagnostic platform. Expects to receive fees of GBP1 million for the development of this platform.
"Cizzle Biotechnology expects to enter into a full commercial contract in due course. Whilst any royalty payments to Cizzle Biotechnology are contingent on the successful development of AZD1656, today's announcement by [St George Street] on the positive results from its clinical trial is significant step forward in Cizzle Biotechnology realising the full potential of its royalty rights in AZD1656," the company adds.
Current stock price: 5.13 pence, up 7.9% on Thursday
Year-to-date change: down 45% since May 14
By Scarlett Butler; scarlettbutler@alliancenews.com
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