Jul. 1 at 12:05 PM
$ONCT Oncternal to sell zilovertamab, ONCT-808 programs, wind down operations
Oncternal Therapeutics announced the sale of its zilovertamab and ONCT-808 programs to Ho'ola Therapeutics. Zilovertamab is an investigational monoclonal antibody designed to inhibit the function of Receptor Tyrosine Kinase-Like Orphan Receptor 1, and ONCT-808 is an investigational autologous chimeric antigen receptor T cell therapy that targets ROR1 using the binding domain from zilovertamab. Ho'ola will pay Oncternal a
$3M upfront payment, with
$2.25M paid immediately and
$750,000 upon resolution of certain outstanding contractual obligations with third parties.
Oncternal will also be eligible to receive up to
$65M in development, regulatory approval and sales milestone payments for the acquired products. The development milestones consist of up to
$5M upon either the last patient enrolled in a pivotal clinical trial or a regulatory approval submission. The regulatory milestones consist of up to
$40M in connection with regulatory approvals.
The sales milestone payment consists of
$20M upon achievement of a net sales threshold. The foregoing development and regulatory approval milestones are based on clinical trials and/or regulatory approvals in any of the following major markets: the U.S., United Kingdom, Germany, Spain, France or Italy, and Japan. The asset sale was completed on June 27, pursuant to an asset purchase agreement as of the same date.
Oncternal also announced that, following the asset sale, Craig R. Jalbert has been appointed President, CEO, Treasurer, Secretary, and sole member of Oncternal's board of directors, and Oncternal's directors and remaining employees have resigned. Mr. Jalbert, a principal of the accounting firm Verdolino & Lowey, P.C., brings over 30 years of experience in overseeing the dissolution of companies. Mr. Jalbert will oversee the winddown of Oncternal's operations, including any future distribution of remaining cash and future rights to any milestone-based payments.
