Prima BioMed (ASX:PRR) has ended its search for a partner to oversee the further development of its CVac immuno‐oncology.
The company has announced that US-based Sydys Corporation has been repurposed as a clinical stage biotechnology company in order to develop the CVac assets.
Under the terms of the agreement, Sydys will license Prima’s CVac related assets, including manufacturing protocols, clinical data from Phase I and Phase II trials, patents and know‐how.
Prima will also sell certain assets including some equipment and inventory to Sydys.
Dr Sharron Gargosky, the former Chief Technical Officer of Prima who has overseen the development of CVac since 2010, will also transition to Sydys as a consultant to continue the product's development.
Marc Voigt, Prima’s CEO, will join the Sydys Board of Directors soon after closing.
As part of the transaction, Prima will receive a 9.9 per cent equity stake in Sydys at the time of closing as consideration for the assets being transferred.
According to Prima, no upfront payment will be received given the significant capital requirements for conducting clinical trials.
"Prima could receive over A$400 million (US$293 million) in development, regulatory and commercial milestone payments payable for achievement of set commercial sales targets, in addition to low single digit royalties on sales," said the company.
"Following extensive discussions with a number of third parties, we have reached what we consider to be an entrepreneurial solution which we believe best positions CVac for clinical success and, hopefully, commercialization," said Marc Voigt, Prima’s CEO.
Joseph Hernandez, the newly appointed Executive Chairman of Sydys Corporation, added: “We believe that the CVac program has tremendous potential, supported by encouraging Phase I and II data in ovarian cancer patients. Studies conducted to date have reinforced CVac's strong safety profile and demonstrated meaningful improvements in both overall survival and progression-free survival compared to standard-of-care."