Following an FDA setback, Malvern-based Galera Therapeutics is selling its drug portfolio to the Canadian biotechnology firm Biossil in a deal that has been valued at up to $105 million, writes John George for the Philadelphia Business Journal.
As part of the deal, Galera will receive $3.5 million upfront for its dismutase mimetics portfolio, which includes the drug candidates avasopasem and rucosopasem. The agreement also includes potential regulatory and commercial milestones along with contingent value rights that could increase the total value by another $101.5 million.
Avasopasem is an experimental drug for radiotherapy-induced severe oral mucositis in patients with head and neck cancer. It was once Galera’s lead drug candidate, but the FDA rejected its new drug application in 2023, citing clinical trial data that was “not sufficiently persuasive” in demonstrating its effectiveness.
Galera CEO Dr. Mel Sorensen said that the deal “substantially” improves the likelihood that avasopasem will reach patients battling cancer.
“We also believe this transaction serves the best interests of our shareholders, who stand to benefit further should potential regulatory and commercial milestones be achieved,” he said.
Read more about Galera Therapeutics and Biossil entering into a deal worth $105 million in the Philadelphia Business Journal.
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