Cleveland BioLabs (CBLI) has entered into a 50/50 joint venture with Bioprocess Capital Ventures to develop the company’s Curaxin compounds for cancer applications. As per the agreement, CBLI is expected to transfer rights to its pipeline of Curaxin anticancer molecules to the new joint venture, Incuron, and Bioprocess Capital Ventures will contribute approximately $18m over three payments to support development of the compounds.
Reportedly, the first payment of $5.8m is due upon formation of the Incuron entity. The ensuing payments are based upon achievement of predetermined development milestones. The first milestone payment of $6.4m shall be made upon approval to begin clinical trials on oncology patients with a selected lead Curaxin compound, or upon progression of a clinical program of CBLC102.
The company said that the second milestone payment shall be made upon completion of at least one phase I/II trial in cancer patients. CBLI will serve as a subcontractor to Incuron to support certain mechanistic studies and oversee clinical development.
Michael Fonstein, president and CEO of CBLI, said: “We are excited to conclude this deal and move our lead next generation Curaxin compounds into human trials. We believe this transaction reflects the outstanding potential of Curaxins as novel anti-cancer drugs with unique mechanism of action and projected broad ranging activity. The investment into the joint venture enables us to expedite development of this class of drugs towards efficacy testing in cancer patients.”