(Alliance News) - Silence Therapeutics PLC on Tuesday said it has signed a technology evaluation agreement with Japanese firm Takeda Pharmaceutical Co Ltd and is intending to create a US subsidiary in 2020.
Shares in Silence jumped 12% to 364.00 pence in London in morning trade.
Silence focuses on the discovery, development, and delivery of RNA therapies to treat serious diseases. Under the agreement with Takeda, the two firms will look into the potential of using Silence's platform to create small interfering RNA molecules against a target identified by Takeda.
Small interfering RNA or siRNA binds to a target and is used to silence a specific gene.
Takeda will provide a "single-digit million dollars of research funding" to Silence to finance the project and the two firms have agreed to negotiate terms for a licence agreement if the initial evaluation study is successful.
Silence said was "encouraged" by the increasing prominence of RNA interference technology, noting "significant partnerships and transactions" in this area, including Novartis AG's acquisition of RNA interference drug maker The Medicines Company for USD9.7 billion in November.
Silence said it is looking into multiple opportunities for partnerships with pharmaceutical majors.
Further, in light of the company's increased US focus, Silence is planning to establish a US subsidiary in 2020.
As at the end of December, Silence's cash balance stood at GBP33.5 million, meaning it has enough cash to support its operations under its current business plan through to the second half of 2021. It will publish its 2019 annual results in April.
"We are in our most robust health now, both financially and operationally, and today's agreement with Takeda represents further validation of our technology and capabilities," said Silence Executive Chair Iain Ross.
"In 2020, Silence will look to continue leveraging its expertise to advance its pipeline of new medicines through the clinic to show safety, tolerability and efficacy for patients. In addition, we will continue to explore multiple opportunities to create shareholder value through significant partnerships that leverage the company's proprietary GalNAc-siRNA platform. With our increased US focus, the board has taken the decision to establish a US subsidiary in the coming year to improve the company's visibility and capture value for shareholders by more actively participating in the rapidly expanding field and the world's most significant healthcare market," Ross added.
By Anna Farley; annafarley@alliancenews.com
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