Roquefort Therapeutics proposes sale of Midkine portfolio to Pleiades Pharma

Roquefort Therapeutics plc, a London Stock Exchange (LSE:ROQ) listed biotech company, has announced its plan to divest its subsidiary, Lyramid Pty Ltd, to Pleiades Pharma Limited. This strategic move aims to unlock shareholder value while ensuring ongoing exposure to promising clinical and preclinical oncology programs.

The transaction is set to deliver a minimum consideration of US$10 million and represents a pivotal moment for Roquefort Therapeutics, as it transitions to a new phase of growth by leveraging its extensive portfolio in the high-value oncology and immunology markets.

What the Midkine Portfolio Sale Means for Roquefort

The proposed sale underscores Roquefort Therapeutics’ commitment to a strategy centred on acquiring, developing, and monetising advanced biotech assets. Lyramid, a wholly owned subsidiary acquired in 2021 for £1 million, holds the intellectual property for the company’s Midkine-related programs. These assets include mRNA, RNA, and antibody-based therapeutics, all designed to address unmet needs in oncology and other complex diseases.

Through the proposed sale to Pleiades Pharma, Roquefort will maintain a material equity position in Pleiades, ensuring participation in the continued development of the portfolio. According to Roquefort’s CEO, Ajan Reginald, this approach reflects the company’s focus on “valuation arbitrage,” enabling it to capitalise on higher valuations typically assigned to private biotech firms.

Key Transaction Details

The deal is structured to deliver at least US$10 million in equity within Pleiades, with the possibility of upfront cash payments. This consideration highlights the market value of Lyramid’s assets, which have progressed through preclinical development under Roquefort’s ownership.

However, the transaction’s completion is contingent on several factors, including Pleiades concluding its current fundraising activities and finalising in-licensing agreements. Both parties have a 30-day exclusivity period to finalise a binding Share Purchase Agreement (SPA), further cementing the terms of this strategic partnership.

The announcement also signals a shift away from the previously proposed antibody licensing partnership with PDC-CRO. While this agreement has been superseded by the Pleiades transaction, PDC-CRO remains a strategic partner, particularly in clinical research for the Middle East region.

Advancing the Midkine Portfolio

The Midkine portfolio at the heart of this transaction includes five promising preclinical programs targeting oncology. Midkine, a growth factor linked to cancer progression and inflammatory diseases, has emerged as a critical area of innovation. Roquefort Therapeutics has developed:

mRNA therapeutics targeting cancer at the genetic level.

Antibodies demonstrating efficacy in preclinical toxicology studies.

siRNA therapeutics addressing solid tumours.

Cell therapies leveraging direct and immune cell-mediated anti-cancer mechanisms.

This comprehensive portfolio has positioned Roquefort as a leader in the high-growth immunology and oncology markets.

Why Pleiades Pharma Is the Right Fit

Pleiades Pharma, a private company with a strong track record of delivering successful trade sale exits, is uniquely positioned to maximise the potential of Lyramid’s portfolio. Led by Caroline Fontier, an experienced industry executive, Pleiades has developed a robust pipeline of clinical and preclinical assets. The company’s history of achieving over US$750 million in trade sale transactions underscores its capability to drive the next phase of development for the Midkine programs.

Strategic Implications for Roquefort Therapeutics

The sale aligns with Roquefort Therapeutics’ overarching strategy of acquiring, developing, and divesting innovative biotech assets. By retaining an equity stake in Pleiades, Roquefort ensures ongoing exposure to the Midkine portfolio’s growth potential while benefiting from Pleiades’ advanced clinical expertise.

This approach also reflects a growing trend among UK biotech companies to leverage private valuations for public entities, unlocking value for shareholders. As Roquefort transitions from preclinical development to strategic partnerships, it remains well-positioned to capitalise on opportunities in the immunology and oncology markets.

Expert Insights

Industry analysts suggest that Roquefort Therapeutics’ decision to divest Lyramid while retaining equity in Pleiades could strengthen its financial position and accelerate the commercialisation of its programs. With the global oncology market projected to exceed US$250 billion by 2030, this transaction highlights Roquefort’s forward-thinking strategy and its ability to navigate a competitive landscape.