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news.Cleveland BioLabs (BioLabs) and Bioprocess Capital Ventures (BCV) have inked a term sheet agreement to form a 51%:49% (respectively) joint venture in Russia. The move is aimed at the development of BioLabs’s Curaxin compounds for cancer applications.
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As per the agreement, BioLabs will transfer rights to its pipeline of Curaxin anticancer molecules to the joint venture, and BCV will fund about $15 million in three payments to support the development of compounds. The first payment will be based upon signing of the final agreement and the ensuing payments will be due upon completion of predetermined development milestones.
The term sheet is not binding and the deal closure is subject to completion of a final approval process by the investment committee of the Russian fund.
Michael Fonstein, CEO of BioLabs, said: “we believe this opportunity establishes a fair initial valuation for our Curaxin compounds and would enable us to bring our lead next generation Curaxin compound, CBLC137 into human trials.”
BioLabs is involved in the business of drug discovery and development while BCV is a Russian venture capital fund.