Market reaction
Shares of AlzeCure Pharma jumped sharply, hitting an intraday peak of 7.24 Swedish crowns on Wednesday - their highest level since Jan. 10, 2022 - before pulling back later in the session. The stock had closed at 3.87 crowns on Tuesday, and is up more than 225% year-to-date.
Deal outline
AlzeCure said it has entered an out-licensing and collaboration agreement with Danish biotech QuantumCell ApS that grants QuantumCell global rights to AlzeCure’s Alzheimer’s platform NeuroRestore, including the lead compound ACD856. The transaction is reported to be worth in excess of $2.2 billion, excluding royalties.
Under the agreement AlzeCure is to receive an upfront total of $12 million. Of that amount, $5 million will be delivered as a direct equity investment in AlzeCure, made at a 30% premium to the company’s average share price of 3.78 Swedish crowns over the preceding 10 trading days, the company said.
The collaboration further includes development and commercial milestone payments, and provides for tiered royalties on sales that range from single-digit to low double-digit percentages.
About ACD856 and NeuroRestore
NeuroRestore’s lead molecule, ACD856, is described by AlzeCure as a small-molecule positive allosteric modulator of both NGF/TrkA and BDNF/TrkB signaling. Preclinical studies have shown the compound can enhance neuronal communication and improve cognitive measures such as learning and memory.
The company says the candidate has demonstrated neuroprotective, anti-inflammatory and disease-modifying effects across multiple preclinical models, and that ACD856 is currently in clinical development.
Company comments
Johan Sandin, Chief Scientific Officer at AlzeCure Pharma, commented: "With the positive clinical results that we previously obtained with ACD856, as well as the preclinical results that support both cognitive enhancing abilities, neuroprotective as well as potent antidepressant effects, this is a very innovative and promising drug candidate for a wide range of indications."
AlzeCure’s CEO Martin Jönsson added: "The outlicensing and collaboration agreement with QuantumCell is another important milestone for AlzeCure. This first-in-class Trk-PAM drug project has been developed from idea to clinical phase in-house and shows the capabilities within AlzeCure."
Conditions and next steps
The companies noted the transaction is subject to customary closing conditions, including approvals required by Swedish and Danish authorities under foreign direct investment regulations.
Note: The article reports the terms and market reaction as provided by AlzeCure and describes the candidate ACD856 as the company has characterized it in its statements. The transaction value is stated as more than $2.2 billion excluding royalties, and the upfront consideration and equity investment figures are as reported by the company.