Silence Therapeutics PLC has teamed up with one of China’s biggest drug developers in a deal that could be worth US$1.3bn in milestone payments.
The UK gene silencing specialist will receive an ‘upfront’ US$16mln as part of the collaboration agreement with Hansoh Pharma.
The two aim to create new treatments using Silence’s mRNAi GOLD platform, which has been specially created to find liver disease treatments.
Under the terms of the transaction, Silence will gain exclusive rights to two resultant drug candidates everywhere except in greater China.
Following a phase I clinical study, Hansoh will have options over the Chinese rights to two targets as well as the global rights to a third compound.
Silence chief executive, Mark Rothera, said: "We believe Hansoh's extensive clinical development and commercialisation experience in China make them an ideal partner.
“This collaboration is a good example of our hybrid model in action, balancing proprietary and partnered programs to maximise the substantial opportunity of our mRNAi GOLD platform for targeting disease-associated genes in the liver.
“The Hansoh partnership enables us to move two new proprietary programs forward subsidised by non-dilutive capital while also gaining access to the second-largest pharmaceutical market globally.”
In a separate announcement, Silence said it was cancelling its listing on London’s AIM market effective from the end of trade on November 29, which would make its primary listing Nasdaq, the tech and biotech-focused US bourse.
CEO Rothera said: "This marks a very important step in the evolution of our company and positions Silence as a global RNAi leader.
“With our mRNAi GOLD platform advancing in the clinic, we see substantial opportunity to build value over the next 12 months and longer-term.
“We are grateful to have the continued support of our loyal shareholders and look forward to this exciting new chapter of growth."
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