Roquefort Therapeutics in $10M Deal with Pleiades Pharma
has announced a term sheet for the sale of its wholly owned subsidiary, Lyramid Pty Ltd, to Pleiades Pharma Limited for a minimum consideration of US$10 million. This includes equity in Pleiades and potential upfront cash payments. The transaction is expected to conclude within 30 days, subject to specific conditions such as Pleiades finalising its fundraising and in-licensing deals.
Key Transaction Highlights:
- Asset Sale: Roquefort Therapeutics will sell 100% of Lyramid, which holds the Midkine intellectual property portfolio.
- Consideration: Minimum US$10 million in equity with potential cash components.
- Completion Conditions: Includes a 30-day exclusivity period to finalise the share purchase agreement (SPA).
- Post-Sale Structure: Roquefort will hold a significant equity stake in Pleiades, which is a private company with both clinical and pre-clinical programmes.
Strategic Context:
- Roquefort acquired Lyramid in 2021 for £1 million and has since advanced its Midkine portfolio, including mRNA, oligonucleotide, and antibody programs.
- The transaction aligns with Roquefort’s strategy to create value through acquisition, development, and monetisation of biotech assets.
About Pleiades:
- Led by experienced Pharma CEO Caroline Fontier, with a history of significant trade sales exceeding US$750 million.
- Pleiades will continue to work with PDC-CRO as its clinical research partner in the Middle East.
CEO Ajan Reginald emphasised that this sale reflects the company's value-realisation strategy, while retaining equity ensures Roquefort participates in the future success of the Midkine portfolio.
View from Vox:
Roquefort Therapeutics' proposed sale of its Midkine portfolio to Pleiades Pharma represents a significant milestone for both the company and the wider UK biotech sector. This transaction not only monetises a valuable asset but also underscores a broader trend among smaller UK biotechs leveraging valuation gaps between private and public markets.
The deal highlights Roquefort's strategic ability to develop and monetise its assets effectively. By transitioning ownership of the Midkine portfolio to Pleiades—a well-funded company with strong clinical expertise—Roquefort shifts from direct asset management to holding equity in a diversified clinical pipeline. This approach reduces risk while retaining the potential for long-term upside.
For retail investors, the deal strikes an attractive balance between immediate monetisation and future growth potential through Pleiades' equity. However, the ultimate success of this strategy will depend on Pleiades' ability to execute its clinical and operational goals, making close monitoring of developments essential.
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