Exicure, Inc. and Bluejay Therapeutics Inc. Enter into a Patent License Agreement to Develop Cavrotolimod for the Treatment of Hepatitis
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The licensing agreement between Exicure, Inc. and Bluejay Therapeutics represents a strategic pivot for Exicure, which has historically been focused on oncology, into the infectious disease space. The collaboration is centered around the development of cavrotolimod, a nucleic acid therapy, for the treatment of hepatitis. This move could potentially open up a new revenue stream for Exicure through royalties on future net sales, assuming successful development and commercialization by Bluejay.
The modest upfront payment suggests a conservative investment by Bluejay, possibly reflecting the early stage of development or the perceived risks associated with the therapy's success. However, the royalty agreement indicates a longer-term upside for Exicure. It is important to note that the success of cavrotolimod in hepatitis treatment could significantly impact the competitive landscape of hepatitis therapies, potentially offering a novel mechanism of action compared to existing treatments.
From a financial perspective, the deal structure, with a small initial payment followed by royalties, minimizes Exicure's short-term revenue influx but aligns the company's long-term interests with the success of cavrotolimod's development. The responsibility of Exicure to manage the patent portfolio adds an operational cost, but it also allows them to maintain control over the intellectual property, which could be valuable in future negotiations or developments.
Investors should monitor the progression of cavrotolimod through clinical trials, as milestones achieved could influence Exicure's stock performance. The long-term benefits hinge on the clinical success of the treatment and its market acceptance, which are inherently uncertain at this stage. This agreement is indicative of Exicure's strategic flexibility and its ability to leverage its technology platform beyond oncology.
The hepatitis market is a substantial and growing segment within the pharmaceutical industry, driven by the high prevalence of the disease globally and the ongoing need for effective treatments. The partnership to develop cavrotolimod could position both Exicure and Bluejay to capitalize on this market, provided the treatment demonstrates efficacy and safety in clinical trials. The licensing agreement allows Bluejay to harness Exicure's patented technology, which could potentially expedite the therapy's development by building on existing research and development investments made by Exicure.
It will be crucial to assess how cavrotolimod differentiates itself from other hepatitis treatments in terms of efficacy, safety and cost-effectiveness. The ability to capture market share will depend on these factors, as well as on the strategic execution of clinical development and eventual marketing by Bluejay. Stakeholders should consider the implications of this partnership on the broader competitive dynamics of the hepatitis treatment market.
Under the terms of the agreement, Bluejay will receive an exclusive license in the field of hepatitis to all of Exicure’s relevant patents. Bluejay paid Exicure an initial small, one-time payment after the execution of this Agreement. Exicure will also be entitled to modest royalties on future net sales on all licensed technology by Bluejay during the term of the licensed patents. Exicure will be responsible for, and make all decisions concerning, the preparation, filing, prosecution, and maintenance for each patent and patent application included within the licensed patents.
"Our partnership with Bluejay continues the development of cavrotolimod," said Paul Kang, Chief Executive Officer of Exicure. "Exicure has spent considerable resources to discover and develop cavrotolimod. While historically, we focused on oncology, Bluejay’s commitment and expertise in developing cavrotolimod for potential treatment of hepatitis makes them an ideal partner to expand the use case of cavrotolimod," added Mr. Kang.
About Exicure
Exicure, Inc. has historically been an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. Following its recent restructuring and suspension of clinical and development activities, the Company is exploring strategic alternatives to maximize stockholder value, both with respect to its historical biotechnology assets and more broadly. For further information, see www.exicuretx.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact may be deemed forward looking including, but not limited to, statements regarding: the Company’s current business plans and objectives, including the pursuit of strategic alternatives to maximize stockholder value. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “advance,” “believes,” “target,” “may,” “intend,” “could,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. For a discussion of other risks and uncertainties, and other important factors, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statements, see the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on March 27, 2023, as updated by the Company’s subsequent filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.
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Source: Exicure, Inc.
