Roquefort Therapeutics: One landmark deal done and more to come14 Feb 2025 14:41
Published: 14:12 14 Feb 2025 GMT
Ajan Reginald, chief executive of Roquefort Therapeutics PLC (LSE:ROQ), has a knack for distilling complex strategies into a single sentence. “We find diamonds in the rough and we cut and finish them ,” he says, summing up the company’s approach to biotech investment and development.
One example is the planned £8 million sale of Lyramid, a business Roquefort acquired for just £1 million. The simple arithmetic suggests a straightforward profit, but the real value lies in the work done in the interim.
Lyramid’s midkine inhibition assets (which offer a new approach to targeted cancer treatment) are now at what is known as the pre-investigational new drug stage.
In practical terms, pre-IND is the phase of drug research before human trials can begin. At this stage, scientists are working in the lab to establish how a drug functions, testing it on cells and animals to assess safety and efficacy.
Making progress
Before regulators such as the US Food and Drug Administration (FDA) allow clinical trials, companies must demonstrate a clear understanding of how the drug works, provide robust data on its potential and show that it can be manufactured safely and consistently.
With its midkine programme now at this point, Roquefort is preparing to sell Lyramid to Pleiades Pharma in a deal expected to be completed by the end of June.
The agreement includes an upfront cash payment that will help fund Roquefort’s two remaining programmes, while also giving the company an equity stake in Pleiades. That exposure to a broader portfolio of drug assets—some already in clinical trials—could prove strategically valuable.
There is also the prospect of a windfall if Pleiades is acquired, a possibility given the track record of its chief executive, Caroline Fortier, who has built and sold life sciences companies worth a combined £750 million.
With the Lyramid sale in progress, Roquefort’s focus shifts to assets acquired through its takeover of Oncogeni, a biotech founded by Nobel laureate Sir Martin Evans.
The company is developing treatments in two cutting-edge areas of cancer research: small interfering RNA (siRNA, or gene silencing) and mesodermal killer (MK) cells.
Exciting assets
MK cells represent a relatively new approach to cellular medicine, engineered to destroy cancer cells and enhance the activity of the body’s natural killer cells.
Reginald believes these two programmes are the most promising in Roquefort’s pipeline.
The plan is to advance both to the point where they are ready for human trials, with proceeds from the Lyramid sale funding the necessary preparatory work.
Meanwhile, the company is in discussions with potential partners to take the assets further. Out-licensing deals of this kind can be significant value inflexion points, often involving substantial upfront and milestone payments.
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