Biodexa has reached an agreement to acquire worldwide rights to Adhera Therapeutics’ Phase II-ready asset, tolimidone, a novel lyn kinase activator, with intentions to develop it for type I diabetes (T1D). The deal consideration includes an upfront cash payment of US$0.3m to Adhera and US$2m in American depository shares (ADS) to Adhera’s secured noteholders with up to US$4m in additional deferred stock consideration to noteholders. These rights have been sub-licensed from Melior Pharmaceuticals, which has been developing tolimidone in type II diabetes (T2D) (Phase II) and non-alcoholic steatohepatitis (Phase I). Unlike T2D, which is a lifestyle disease, T1D is an autoimmune condition (requiring daily insulin treatment) and currently has no curative therapies. We see this deal as diversifying Biodexa’s development pipeline outside oncology and into an area with sizable commercial opportunity (US$7.6bn market).
