Aberystwyth1 Mar 2018 11:45
Hey buddy, I hope you are well.
SAR going forwards will be cash generative based upon royalty payments alone, also we have projects which have not yet been put into trials but will be soon. So there is a possibility of somebody taking SAR over simply to acquire the patents and IPR at an early stage for a cheap price rather than at a later stage at potentially a much higher price.
Sierra would become a target and probably are a target based upon Chk1 alone as they hold the worldwide licensing agreement with SAR / CRT and ICR earning royalties in the event of a viable product being developed.
So there is a case is for them to be bought separately or maybe Sierra take SAR and somebody in the future takes Sierra, one thing for sure is if there is a viable and effective product developed for the cancers targeted, the two entities SAR and Sierra will be worth billions not millions. Yes it is still a big if, but as more progress is made and it appears no negatives have surfaced, the value of the companies increases, even if at this moment the share price of SAR doesn't reflect it. GL. Andy.
Sareum Holdings plc (AIM:SAR), the specialist cancer drug discovery and development company, is pleased to announce that its co-investment partner, the CRT Pioneer Fund, has today licensed exclusive and worldwide rights for the Chk1 inhibitor cancer drug candidate CCT245737 (to be renamed PNT737) to ProNAi Therapeutics, Inc. (NASDAQ: DNAI).
Under the terms of the agreement, an immediate upfront payment of US$7.0 million is due to the co-investment partners and an additional fee of up to US$2.0 million will be payable upon the successful transfer of the two ongoing Phase 1 clinical trials to ProNAi. Additional payments in the aggregate amount of up to US$319.5 million may become payable upon achievement of certain development, regulatory and commercial milestones. ProNAi will also owe high single to low double digit 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 these payments. Therefore, Sareum will receive (i) US$1.9 million as an upfront payment, (ii) potential future milestone payments of up to US$88.4 million, some of which are expected to be paid within the next twelve months upon certain development milestones being met and (iii) its share of any sales royalties.