Cizzle Biotechnology Holdings plc (LON:CIZ), a UK based developer of a blood test for the early detection of a majority of the different forms of lung cancer, has announced that it has signed a Memorandum of Understanding with St George Street Capital, a UK-based medical charity led by a group of highly decorated academics and ex-pharma executives formed to deliver much needed treatments to patients. SGS’s strategy is to progress existing clinical assets through Phase II medical trials, before licencing them on for Phase III trials and commercialisation.
The MoU covers a proposed collaboration between the parties to develop a companion diagnostic platform for certain therapeutic assets already licenced to SGS by a large pharma company, which seeks to address unmet clinical needs in autoimmune disease. A companion diagnostic is a medical device which provides information that is essential for the safe and effective use of a corresponding drug. It assists health care professionals determine whether a particular therapeutic product’s benefits to patients will outweigh any potential serious side effects or risks.
Under the terms of the MOU, and subject to a full commercial contract being entered into, it is proposed that SGS will pay milestone payments to Cizzle Biotechnology of up to £1 million, from which the Company will fund the work to be undertaken to develop the companion diagnostic and any third parties contracted by Cizzle Biotechnology to assist. SGS is to be responsible for providing clinical samples, reagents and patient and technical information and, in addition, will provide regulatory and technical advice on securing the required regulatory approvals for the companion diagnostic platform. Cizzle Biotechnology will utilise its existing technology and know-how covering companion diagnostics in developing the platform.
Further, under the MoU, SGS has agreed to grant Cizzle Biotechnology potential future royalty payments from the commercialisation of SGS’s therapeutic asset of up to £5 million, plus potentially further payments from the use of the companion diagnostic. In consideration of this potential royalty stream, Cizzle Biotechnology has paid £65,000 to SGS on signature of the MOU and will pay a further £135,000 on entering into a full commercial contract. Any payments under this royalty are contingent on the successful development of SGS’s therapeutic asset.
Allan Syms, Executive Chairman of Cizzle Biotechnology, said:
“We are delighted to have signed the MoU with SGS. The proposed commercial agreement with them will leverage the technology and know-how of Cizzle Biotechnology into a new area, bringing Cizzle Biotechnology’s diagnostic capabilities into the therapeutic arena and broadening the opportunities and potential revenue streams for the Company.
“Whilst this is an exciting opportunity for the Company, I would like to reiterate that our primary focus remains on progressing our blood test for the early detection of lung cancer, based on the C1Z1B biomarker, and I look forward to reporting on our progress in due course.”
Professor John Martin, Chairman of SGS, said:
“The value of our therapeutics assets would be greatly enhanced by a corresponding companion diagnostic and we look forward to working with Cizzle Biotechnology to deliver a suitable test with their significant expertise in this area.”
