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LONDON (Alliance News) - Cancer drug company Sareum Holdings PLC said Monday it will receive USD550,000 as part of a success payment relating to its joint Chk1 licence agreement.
Sareum said the payment is part of a USD2.0 million success milestone payment from Sierra Oncology Inc to Sareum and its co-investment partner CRT Pioneer Fund. The milestone relates to the successful transfer of two ongoing phase I clinical trials to Sierra Oncology.
Further payments in aggregate of up to USD319.5 million are payable on the achievement of further milestones, while Sierra Oncology will also pay royalties on the net sales of any product successfully developed from the agreement.
Sareum also noted it will receive an unspent balance of around GBP200,000 from its original financial commitment to the trial funding.
"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 GBP1.5 million as our share of the USD7 million up-front payment announced in September," said Tim Mitchell, chief executive officer of Sareum.
Shares in Sareum were up 24% at 1.05 pence Monday after the news.
By Adam Clark; adamclark@alliancenews.com
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