Destiny Pharma PLC on Friday said that it has signed a collaboration agreement with Sebela Pharmaceuticals for NTCD-M3, its lead asset for the prevention of clostridioides difficile infection recurrence.
Destiny is a Brighton, England-based clinical-stage biotechnology company.
According to the terms of the deal, Sebela will lead and finance the future clinical development and commercialisation activities of NTCD-M3 in North America. Destiny Pharma will retain the majority of rights for Europe and the rest of the world, while Sebela has a minority interest in any income generated in these territories based on the clinical studies it is funding.
The agreement, which could be worth up to $570 million, includes: an initial upfront payment of $1 million; success-based development milestones of $19 million; and sales revenues-based milestone payments up to $550 million.
Destiny also separately announced a fundraising of up to £8 million, comprising a placing, subscription and open offer.
The shares were placed at 35 pence each to raise about £7 million. The issue price represents a discount of 27% to the closing price of 48p per existing ordinary share on February 23, being the last business day before the announcement.
Of the total placing shares, 14.3 million will be allotted from existing share authorities. Destiny said the net funds would allow it to complete final Phase 3 clinical trial preparation for NTCD-M3.
Destiny shares were trading 23% lower at 36.90p each in London on Friday afternoon.
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