Swedish biotech AlzeCure has announced it has completed its initial transaction with QuantumCell, receiving $12m in upfront payments for the licensing of AlzeCure's NeuroRestore Alzheimer’s platform, including its lead drug candidate, ACD856.
The total upfront payment of $12m comprises a $7m cash licence payment and a $5m direct investment in AlzeCure.
The agreement between the pair, announced last month, involves the out-licensing of the NeuroRestore platform and ACD856 to QuantumCell, as well as a collaboration agreement between the companies.
It also includes development and commercial milestone payments, as well as tiered royalties on future sales, with the total value of the agreement (excluding royalty payments) exceeding $2.2bn.
QuantumCell will assume the global rights to NeuroRestore and be responsible for the continued clinical development and commercialisation of the platform.
"The receipt of the upfront payment and completion of the transaction with QuantumCell is a clear testament to the strength of our research and the value represented by NeuroRestore," said AlzeCure Pharma’s CEO, Martin Jönsson.
The platform, including its lead drug candidate ACD856, now has a strong, long-term partner capable of advancing the project for the benefit of multiple patient populations.
"We look forward to the collaboration with QuantumCell regarding the continued development of ACD856 and the NeuroRestore platform. The payment that we have received significantly strengthens our financial position and also gives us greater flexibility to advance our other projects."
The transaction has been completed following the satisfaction of customary closing conditions, including approval by the Swedish and Danish authorities under the applicable foreign direct investment regulations.
