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- Cellmid (CDY) has signed an agreement to sell its subsidiary, Lyramid, to Provelmare Holding for $500,000 upfront
- Lyramid focusses on commercialising Cellmid’s comprehensive midkine intellectual property portfolio
- The company’s midkine data has demonstrated early efficacy in several inflammatory and autoimmune diseases and cancer
- Panama-based company Provelmare plans to continue with the work completed on the drug development, aiming to take the project through to its next value inflection point.
- The sale is on a ‘going-concern’ basis, and Lyramid’s business, including employees, contractors and collaborators remain intact following the sale
- Shares are trading 7.7 per cent higher at 7 cents each
Cellmid (CDY) has signed an agreement to sell its subsidiary, Lyramid, to Provelmare Holding, for $500,000 upfront.
Lyramid is Cellmid’s research and development subsidiary focussed on commercialising its comprehensive midkine intellectual property portfolio.
Extensive pre-clinical and human diagnostic data, generated by Cellmid over the past ten years utilizing the company’s proprietary midkine antibodies and MK ELISA, has demonstrated early efficacy in several inflammatory and autoimmune diseases and cancer.
Panama-based Provelmare plans to continue with the work completed on the drug development program by Cellmid, aiming to take the project through to its next value inflection point.
In particular, the company intends to fund the IND-enabling studies of Lyramid’s midkine therapeutics, including selection of the therapeutic agent, carrying out in vitro and pre-clinical validation, pre-clinical safety and efficacy studies and GMP manufacture of the drug product.
In addition to a cash consideration of $500,000, payable at the time of completion, Cellmid will also be reimbursed for costs incurred for the midkine research and development between January 1 and April 28 of this year.
Further, Provelmare will provide funding to Lyramid to execute on an agreed product development program.
Specifically, the intellectual property licence between Cellmid and Lyramid remains on foot and will provide for a royalty of four per cent, payable to Cellmid on net sale of products developed and sold. Further, a royalty of eight per cent is payable on net sub-licensing revenue.
Moreover, physical midkine assets that are essential for the commercialisation of the intellectual property will be transferred to Provelmare.
The sale is on a ‘going-concern’ basis, and Lyramid’s business, including employees, contractors and collaborators remain intact following the sale.
Shares are trading 7.7 per cent higher at 7 cents each at 1:26pm AEST.
