Cizzle Biotechnology Holdings plc (LON:CIZ), the UK based diagnostics developer, has announced that it has signed a non-binding Memorandum of Understanding for a strategic and exclusive licensing agreement to develop and offer its proprietary test for the CIZ1B biomarker which is highly associated with early-stage lung cancer, throughout the USA and Canada.
The new partnership is intended to incorporate the Company’s existing relationship with Corepath Laboratories, a full-service cancer reference laboratory, as announced on 6 May 2022, through a dedicated, recently incorporated, US based company Cizzle Bio Inc. As set out below, and subject to binding documentation, the proposed royalty arrangements with CorePath will be restructured to enable the Company to gain significant cash flows from new royalty payments and significant cost savings. All planned expenditure related to clinical trials and the commercialization of diagnostic tests for the CIZ1B biomarker in the USA are expected to be funded directly by BIO. In addition, the Company will benefit from the free issue of shares in BIO. BIO is paying a non-refundable upfront fee of US$100,000 within 30 days of signing the MoU for a 120-day exclusivity period to complete the formal legally binding agreement.
