Yesterday, Evgen Pharma informed that it has bought exclusive worldwide licensing rights to a wide range of novel compounds from the Spanish National Research Council (CSIC) and the University of Seville, Spain. As per the terms of the agreement, the company would make a small initial payment and one-off milestone payment as the first compound progresses through clinical development. Royalties on future sales of products would not be more than 1% of the sales.
Beaufort Securities view on Evgen Pharma PLC: The addition of licencing rights expands the pipeline of products for Evgen. The agreement enhances the company’s intellectual property position with rights to over 60 new chemical entities based on the core structure of sulforaphane, the major ingredient in Evgen’s lead product SFX-01. SFX-01 is expected to enter Phase II trials in subarachnoid haemorrhage in the beginning of the next year and later, in metastatic breast cancer. The company is positioning itself to become the world’s unique provider of sulforaphane and sulforaphane-like pharmaceuticals. Its highly protected core technology allows for the production of a stable version of this molecule which, in turn, hold potential to create a technology platform for provision of a broad range of conditions, including cancers and neurological disorders such as stroke, Multiple Sclerosis etc. We maintain a Speculative Buy rating on the stock.
