Seneca Biopharma, Inc. (NASDAQ: CUR) (previously known as Neuralstem) is flying early on in the trading session, trading on gains of around 30%. The gains come after the company announced that it has entered into a new licensing agreement. Here’s what’s going on:
CUR Stock Pops On Licensing Agreement
In a press release issued early this morning, Seneca Biopharma announced that it has entered into a non-binding term sheet with QYuns Therapeutics. QYuns is a China-based company focused on monoclonal antibody therapies.
According to the term sheet, CUR plans on licensing certain assets owned by QYUNS. If a definitive agreement is signed, Seneca and QYuns will enter into a royalty- and milestone-free, perpetual, non-cancelable, exclusive, worldwide, other than Greater China, license to develop and commercialize certain QYun assets.
In the release, the company’s said that these assets include QX005N, QX002N, QX004N and QXOO6N, targeting IL-4Ra, IL-17A, IL-23A and IFNRa, respectively. The deal also gives Seneca access to future antibody assets developed by QYuns.
CUR also said that it intends on collaborating with QYuns on future pipeline expansion. Once the licensing agreement takes place, SNC005, known currently as QX005N, will become the company’s lead candidate. The drug is designed to treat Asthma and Atopic Dermatitis.
To pay for the licensing fee, the company said that it will issue QYuns shares of common stock. However, the amount of shares of common stock to be issued has not yet been determined.
In a statement, Dr. Ken Carter, Executive Chairman at CUR, had the following to offer:
The anticipated in-licensing and collaboration with QYuns, as well as our access to QYuns’ future pipeline assets, is consistent with Seneca’s new focus on developing and commercializing de-risked assets.
We are excited that our lead asset SNC005 is going to be developed with a strategy of fast-follower, to a marketed therapy in the same indications that have estimated peak annual sales of $5.8 Billion. In the US alone, there are estimated to be over 25 million people suffering from Asthma and 18 million from Atopic Dermatitis that we hope could benefit from our therapies.
Why This News Is So Exciting
Ultimately, there are plenty of reasons that investors are excited here. Hee’s how I see it:
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