RE: Sierra26 Sep 2021 12:51
Tomorrow (27/09/2021) marks the 5 year anniversary of the original announcement of the licensing agreement between the CRT Pioneer Fund and ProNAi Therapeutics, Inc. (now, of course, Sierra Oncology):
https://www.lse.co.uk/rns/SAR/licence-agreement-for-chk1-inhibitor-cct245737-xyagc0y38qg1z9d.html
The terms of the agreement seem pretty clear to me: "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". So, we have a 27.5% interest to be precise, although I guess 0.5% of sweet FA is hardly worth mentioning. There was also an expectation that a portion of the milestone payments would be forthcoming "within 12 months", so a timeline of sorts was in the public domain at that time. Personally, as shareholders, I don't think it unreasonable to expect clarity on what has been agreed subsequently, particularly with regards to expiration dates. How long can Sierra occupy the pot without using it, in other words? As co-investment partners, do we not have the right to know?
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