On March 19, 2020 FORMA Therapeutics, Inc. ("FORMA"), a clinical-stage biopharmaceutical company focused on rare hematologic diseases and cancers, reported that it has sold select hit discovery capabilities and related assets to a biotech startup ("NewCo") that aims to increase the efficiency of medicine development using computational-enabled capabilities (Press release, Forma Therapeutics, MAR 19, 2020, View Source [SID1234555693]).
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Under the deal terms, FORMA will receive cash and equity in NewCo as consideration. FORMA will also be eligible to receive royalties on net sales of certain products identified using NewCo’s discovery platform. FORMA retains a wholly-owned pipeline with assets ranging from early drug discovery into clinical development, as well as critical drug discovery capabilities tailored to advance its programs in rare hematologic diseases and cancers. FORMA has also secured an option from NewCo to access early discovery capabilities for a select number of programs.
Per the agreement, NewCo has taken ownership of a defined set of assets outside of FORMA’s primary areas of focus, specifically research and discovery compounds and libraries, a related global intellectual property portfolio, and tangible and intangible assets including equipment and the lease of FORMA’s discovery laboratories located in Branford, Connecticut. NewCo has also hired a group of former FORMA colleagues to further advance the transferred discovery platforms.
"This deal supports FORMA’s strategic shift to specialize in rare hematology and oncology indications, focusing our efforts on FORMA’s rich pipeline of high-quality, small molecule product candidates, including lead product candidates, FT-4202 for the treatment of sickle cell disease and FT-7051 for the treatment of castration resistant prostate cancer with AR-v7 resistant mutation, as well as multiple preclinical programs," said Frank Lee, chief executive officer of FORMA Therapeutics.