The proposed deal is expected to strengthen and distinguish Telix's position in providing patients with a range of care services, subject to customary completion terms
Australia-based Telix Pharmaceuticals has forged a conditional term sheet for the acquisition of QSAM Biosciences and its lead cancer therapy candidate, CycloSam (Samarium-153-DOTMP).
QSAM is a US-based clinical-stage firm engaged in the development of therapeutic radiopharmaceuticals for primary and metastatic bone cancer.
According to the terms of the agreement, Telix has agreed to pay QSAM an upfront collaboration and option fee of $2m.
The fees will be used to advance the development efforts based on mutually agreed objectives and to offer sixty days of exclusivity pending the completion of diligence and execution of a definitive acquisition agreement.
According to Telix, the acquisition of CycloSam aligns with its current therapeutic development activities in sarcoma and prostate cancer.
The proposed deal is expected to strengthen and distinguish Telix’s position in providing patients with a range of care services, subject to customary completion terms.
The acquisition is also anticipated to expand the company’s pipeline depth in osteosarcoma along with near-term opportunities in metastatic disease management.
QSAM has received Orphan Drug and Rare Pediatric Disease Designations (RPDD) from the US Food and Drug Administration (FDA).
QSAM CEO and co-founder Douglas Baum said: “CycloSam is a novel, de-risked clinical asset that has the potential to deliver tangible improvements of prior bone-seeking agents with established efficacy, safety and commercial utility.
“By joining forces with Telix we are accessing a specialised commercial team, distribution network and development expertise, with the goal of realising the full potential of this asset.”
Telix Pharmaceuticals will issue fully paid common Telix shares to cover the whole purchase price of $33.1m in equity at closure if the acquisition of QSAM is approved.
Upon closing, Telix will additionally use a Contingent Value Rights framework to pay up to $90m in contingent clinical and commercial milestone payments, either in cash or equity, based on the achievement and satisfactory completion of milestones.
Telix Group CEO and managing director Christian Behrenbruch said: “With CycloSam we plan to leverage Telix’s extensive experience and success in distributing short-life radiopharmaceuticals using a cold kit product from a nuclear pharmacy.”