Kuros to receive $7 million up front and potentially $166.5 million in future revenues under a royalty purchase agreement with XOMA related to Kuros’s license agreement with Checkmate Pharmaceuticals
Kuros Biosciences AG / Key word(s): Miscellaneous
Ad hoc announcement pursuant to Article 53 of the SIX listing rules
Schlieren (Zurich), Switzerland, 15 July, 2021 - Kuros Biosciences AG ('Kuros' or the 'Company'), a leader in next generation bone graft technologies, announced today that it has entered into a royalty purchase agreement with XOMA Corporation (NASDAQ: XOMA) under which XOMA has purchased a proportion of the potential future pre-commercial milestone payments and all the potential royalties due under the existing license agreement between Kuros and Checkmate Pharmaceuticals related to one of Kuros's assets outside of the bone graft field. Kuros will receive an initial payment of $7 million from XOMA. In addition, Kuros retains the potential to receive up to $24 million in pre-commercial milestones from Checkmate, and is eligible to receive up to $142.5 million in sales milestones from Xoma.
Under the 2015 licensing agreement with Kuros, Checkmate is investigating vidutolimod (CMP-001), an advanced generation Toll-like receptor 9 (TLR9) agonist, delivered as a biologic virus-like particle utilizing a CpG-A oligodeoxynucleotide as a key component, across multiple tumor types in combination with several checkpoint inhibitor immunotherapies. Checkmate is conducting multiple clinical trials, including two phase 2 trials in the melanoma indication, which have already triggered two milestone payments of $2 and $4 million by Checkmate earlier this year. These milestone payments together with the payment from the royalty purchase agreement announced today amount to $13 million in revenue to Kuros in 2021.
Joost de Bruijn, Chief Executive Officer of Kuros, commented: 'This transaction with XOMA offers a unique opportunity for Kuros to secure meaningful capital, while keeping significant downstream payment potential upon successful development of vidutolimod by Checkmate. The proceeds will allow Kuros to further invest in our core business, including commercialization of our MagnetOs bone graft and the clinical development of Fibrin-PTH, which is a substantial commercial opportunity.'
For further information, please contact:
About Kuros Biosciences AG
End of ad hoc announcement
|Company:||Kuros Biosciences AG|
|Phone:||+41 44 733 4747|
|Fax:||+41 44 733 4740|
|Listed:||SIX Swiss Exchange|
|EQS News ID:||1218984|
|End of Announcement||EQS Group News Service|