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Abzena in talks to monetise royalty-bearing Inside products

The life sciences group said earlier this month it will need to raise money in order to support its plans, and it is looking at selling off a chunk of the future royalties from some of its Abzena Inside products
dna double helix
Abzena Inside products are used in other drugs to improve their safety and efficacy

Life sciences group Abzena plc (LON:ABZA) is in talks to monetise its royalty-bearing Abzena Inside products as it looks to secure its financial future.

The AIM-quoted firm reported earlier this month that additional working capital would be required over the coming year to support it.

READ: Period of transition for Abzena

It has signed a non-binding agreement with an unnamed and unconnected third party which, if the deal is confirmed, will pay Abzena an upfront fee in return for a chunk of the future royalties generated by certain Abzena Inside products.

The two parties have now entered into a limited period of exclusivity for the completion of due diligence and negotiation of a definitive agreement.

Following talks with several institutional investors and shareholders, the company decided this was the best way of raising funds.

“The board believes that, if completed, the funds received will be sufficient for the group's short term working capital needs,” read the statement.

Abzena added that it will continue to explore near-term funding options, including equity and/ or debt financing.

Inside products

Abzena specialises in developing technologies that can be added to a drug to improve its delivery, safety profile and effectiveness.

There are currently 12 therapeutic antibodies produced using Abzena’s antibody humanisation technology being progressed through clinical development by its partners.

Each one has the potential to generate license fees, milestone payments and/or royalties for Abzena.

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