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Sareum confident partner will find funding solution for promising cancer drug

SRA737 could be worth up to US$88mln in future milestone payments and royalties, the company confirmed

Sareum Holdings PLC -
In a wide-ranging update, the drug discovery group said its TYK2/JAK1 inhibitors targeting autoimmune diseases and cancers were gaining interest from the pharma industry and potential financial investors

Sareum Holdings PLC (LON:SAR) said it is confident a partner developing a promising cancer drug it discovered has “every chance” of finding a funding solution for the treatment.

Sierra Oncology has told its investors it is investigating “non-dilutive” strategic options for SRA737, which has thus far yielded some highly encouraging results both as a single therapy and in combination.

"We continue to believe, based on the very promising clinical data that has been generated to-date, that Sierra should have every chance of finding a suitable solution to progress the development of SRA737, which in due course would lead to Sareum receiving the milestones set out in the licensing agreement," said chief executive Dr Tim Mitchell.

Sareum confirmed the drug could be worth up to US$88mln in future milestones and royalties to the company.

In a wide-ranging update, the drug discovery group said its TYK2/JAK1 inhibitors targeting autoimmune diseases and cancers were gaining interest from the pharma industry and potential financial investors.

From that programme, SDC 1801 “is making good progress towards the clinic with excellent tolerability”, according to small-cap broker Hybridan. The plan currently is begin first-in-human trials in late 2020.

"We believe our two TYK2/JAK1 inhibitors have the potential to address unmet needs in autoimmune diseases and cancer, through a novel mechanism that is clearly gaining increasing interest from both the pharmaceutical industry and financial investors,” said Sareum CEO Mitchell.

The pre-close trading statement revealed the company made a loss of £1.45mln for the 12 months to June 30, which is modest by industry standards. As of that date it had £920,000 in cash, though this excluded the £780,000 raised just before the year-end.

Quick facts: Sareum Holdings PLC

Price: 0.805 GBX

AIM:SAR
Market: AIM
Market Cap: £26.21 m
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