Circio announces that partner IOVaxis Therapeutics has exercised the option for an exclusive license to mutant RAS cancer vaccine TG01 in China

On March 19, 2024 Circio Holding ASA (OSE: CRNA) reported that following approval of the investigational new drug (IND) application by the Chinese National Medical Products Administration (NMPA) on 1 March 2024, IOVaxis Therapeutics of Nantong, China, has on 15 March 2024 exercised its option to license mutant RAS cancer vaccines TG01 and TG02 (Press release, Circio, MAR 19, 2024, View Source [SID1234641258]). The license grants IOVaxis exclusive rights to develop and commercialize the TG vaccines in Greater China and Singapore.

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Under the license agreement between the parties, Circio is entitled to receive a milestone payment of USD 3m following the exercise of the license option. The total deal includes up to USD 10m in clinical development milestones, as well as royalties and commercial milestones on future sales.

Due to an ongoing process by IOVaxis to secure capital to cover both the milestone payments and the planned phase 1/2 TG01 clinical program and a re-evaluation around the TG01 intellectual property and data protection rights in China, IOVaxis has requested a six-month payment extension of the option fee and a discussion around certain commercial terms. The parties have agreed that IOVaxis will pay USD 300.000 of the option fee to Circio immediately, and that the remaining balance will be due on 15 September 2024. If the payments are not made by the agreed dates, the exclusive license will expire on 15 September 2024.

Dr. John Wang, CEO of IOVaxis Therapeutics, said: "Our substantially expanded IND-package has now been approved by the NMPA, and we are very eager to bring TG01 into the clinic as rapidly as possible to provide a much-needed targeted therapeutic option to patients in China with RAS-mutated pancreatic cancer. The IND-approval was also a critical milestone for our ongoing investor dialogues to secure the required capital for the planned TG01 development program in China and Singapore, and we are very grateful for the flexibility shown by the Circio team to grant an extension to allow further discussions between the parties and with our investors to take place".

Dr. Erik Digman Wiklund, CEO of Circio Holding ASA, added: "The partnership with IOVaxis is an important component of our aim to bring TG01 development forward through strategic collaborations in multiple settings and geographies. Dr. Wang and his team have shown strong commitment to get the IND approved, which required a substantial investment of time and resources by IOVaxis to develop a broad additional pre-clinical data package. We are very pleased to have such a dedicated partner and expect that the IND approval will make their fundraising successful. We look forward to taking our partnership to the next stage and initiate clinical development in China, which will be the first time TG01 is tested in an Asian patient population".