The firm has granted a company called Oxilio a six-month option over NXP001, which the latter will develop as a cancer treatment.
If the option is triggered, Nuformix will receive a “significant upfront payment”, additional development milestones and a royalty on net sales capped at GBP2mln a year. In return, Oxilio will get a licence to the patent estate and “know-how” related to NXP001.
Oxilio’s strategy is one of finding drugs to repurpose in the fight against cancer. The major advantage of this approach is that much is already known about how the drug interacts with the body and how it works, while there is also usually copious safety and toxicity data.
Following the repurposing route tends then to be less risky and substantially cheaper than traditional drug discovery.
Oxilio will focus on developing a unique formulation and dosage for NXP001.
This would potentially overcome the key hurdle in drug repurposing – patent consideration-induced market exclusivity – as well as providing an accelerated route to the clinic.
“This agreement allows Nuformix the opportunity to benefit from the upside of a significant global market opportunity whilst realising short-term revenues,” Nuformix chairman, Dr Chris Blackwell said in a statement.
“Furthermore, it demonstrates our commitment to explore and leverage value-creating opportunities for all our pipeline assets.”