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(Alliance News) - Small molecule drug developer Sareum Holdings PLC on Tuesday said investee Sierra Oncology will need to look at new options to progress development of a key drug.
Sierra holds the licence to SRA737, an oral selective Chk1 inhibitor which could be used, either on its own or in combination, as a cancer treatment.
Sierra has received positive data from testing, Sareum said, and Sierra has since said it is looking at "non-dilutive strategic options" to support the next stages of SRA737's development. Sierra has decide to prioritise a different drug, myelofibrosis candidate momelotinib.
CRT Pioneer Fund licensed SRA737 to Sierra for USD328.5 million, of which USD7 million and the rest paid upon certain milestones being reached. Sareum will get 28% of all payments made to CRT Pioneer by Sierra.
"The preliminary clinical data presented by Sierra on SRA737 at the American Society of Clinical Oncology, alongside other evidence on the use of SRA737 or Chk1 inhibition in combination with PARPi and immuno-oncology approaches, have been very encouraging," said Sareum Chief Executive Tim Mitchell.
"These findings give us confidence SRA737 has the potential to become an attractive new therapeutic option for patients in several important and underserved cancer indications. However, it is now clear the next stages of development of SRA737 are dependent on Sierra being successful in securing a non-dilutive strategic option to enable its planned clinical and preclinical programmes to advance."
"We continue to believe, based on the very promising clinical data that has been generated to-date, that Sierra should have every chance of finding a suitable solution to progress the development of SRA737, which in due course would lead to Sareum receiving the milestones set out in the CPF/Sierra licensing agreement," Mitchell concluded.
Sareum shares were 9.9% lower on Tuesday afternoon in London at 0.32 pence each.
