Portfolio company Kuur acquired by Athenex

RNS Number : 5436X

IP Group PLC

05 May 2021

 

FOR RELEASE ON

05 May 2021

THIS ANNOUNCEMENT CONSTITUTES INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO.596/2014.

IP Group plc - Portfolio company Kuur Therapeutics Ltd acquired by Nasdaq-listed Athenex Inc for up to $185m (£133m*)

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, is pleased to announce that portfolio company Kuur Therapeutics Ltd ("Kuur") has been acquired by Athenex, Inc., (NASDAQ: ATNX), a global biopharmaceutical company, for a total potential consideration of $185 million.

Under the terms of the agreement, Athenex will pay $70 million (£50 million*) upfront to Kuur shareholders and its former employees and directors, comprised primarily of equity in Athenex common stock. Additionally, Kuur shareholders and its former employees and directors are eligible to receive up to $115 million (£83 million*) of milestone payments, which may be paid, at Athenex's sole discretion, in either cash or additional Athenex common stock (or a combination of both).

As a result, and following conversion of loan-notes made available to Kuur in 2019 and 2020, IP Group will receive £30 million* ($42 million) in Athenex stock and is eligible to receive up to a further £52 million* ($72 million) in milestone payments in cash or stock. IP Group's holding in Athenex stock will be subject to typical lock-up provisions. The Directors anticipate that the transaction will result in an increase in the Group's net asset value of approximately £26 million*.

Dr Sam Williams, Managing Partner, IP Group Life Sciences, said: "This is an excellent outcome for Kuur's shareholders, partners and management team. Most importantly, with the backing and support of Athenex, Kuur's pipeline of innovative cell-therapies for the treatment of cancer now has a superb chance of fulfilling its clinical promise. We're particularly proud of what the Kuur management team has been able to achieve since taking over the company a little over a year ago, moving a second product into the clinic, achieving striking clinical response rates and securing a highly satisfactory exit."

* GBP equivalents calculated using 1.39 USD/GBP.

For more information, please contact:

IP Group plc	www.ipgroupplc.com
Greg Smith, Chief Financial Officer Liz Vaughan-Adams, Communications	[phone] [phone]/[phone]
Charlotte Street Partners
David Gaffney	[phone]
Andrew Wilson	[phone]

Notes for editors

About IP Group

IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital (through its 100%-owned FCA-authorised subsidiaries IP Capital and Parkwalk Advisors), networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in early-stage to mature businesses across life sciences and technology. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO.

Group holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated.

For more information, please visit our website at www.ipgroupplc.com .

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