Sareum Share News (SAR)

(ShareCast News) - Sareum Holdings, an AIM listed specialist cancer drug discovery and development company, has announced the attainment of a $2m milestone payment as part of the Chk1 license agreement between its co-investment partner the CRT Pioneer Fund and Sierra Oncology, formerly known as ProNAi Therapeutics.Under the terms of the agreement, the fee has become payable as a result of the successful transfer of the two ongoing Phase 1 clinic trials to Sierra Oncology. Further payments in the amount of up to $319.5m may additionally become payable upon achievement of certain development, regulatory and commercial milestones.Sierra Oncology will pay royalties on the net sales of any product successfully developed.Under Sareum's agreements with Cancer Research Technology and the CRT Pioneer Fund, Sareum is entitled to 27.5% of all payments arising from the Chk1 licence agreement, which means it will receive $550,000 as its financial share of this event.The unspent balance, estimated at around £200,000, of the financial commitment to the trial funding of £797,500 made by Sareum in December 2015 will be returned to the company in due course.Chief executive of Sareum Dr Tim Mitchell said: "We are delighted that the first milestone event from this agreement has been reached. This is a useful addition to our cash position, following the receipt of £1.5 million as our share of the $7 million up-front payment announced in September."The share price of Sareum Holdings was up 14.19% at 0.971p at the close.