QuantumCell has licensed AlzeCure Pharma’s Alzheimer’s disease platform and lead asset for $12 million upfront in a heavily back-loaded deal that bags a potentially symptom-relieving drug candidate on the cusp of phase 2.
AlzeCure moved ACD856, the lead candidate from its NeuroRestore platform, into the clinic in 2019. The asset is a positive allosteric modulator of tropomyosin receptor kinase receptors. By stimulating the signaling of neurotrophins involved in normal neuronal function, the small molecule could aid cognition and treat depression, creating potential applications in Alzheimer’s and beyond.
QuantumCell is paying $12 million upfront for ACD856 and NeuroRestore. The upfront fee includes a $5 million investment in AlzeCure at a 30% premium to its average share price over the past 10 days. QuantumCell has committed to development and commercial milestones that could exceed $2.2 billion.
AlzeCure published phase 1b data on ACD856 in June, showing that the molecule is safe and tolerable when given repeatedly at higher doses than previously tested. In May, AlzeCure CEO Martin Jönsson told (PDF) investors that studying higher doses addressed feedback the company received in talks with other pharma firms.
Higher doses could unlock the use of ACD856 in more indications, with Jönsson naming depression as an area where AlzeCure was seeing growing interest. Alzheimer’s has remained AlzeCure’s lead indication, though. Before outlicensing ACD856, the company planned to use a European Union grant to start a phase 2 trial in the neurodegenerative condition this year.
QuantumCell has yet to discuss its plans for the program and has kept a low profile to date. The Danish startup has an “AI-native, quantum-enabled platform for next-generation neuropsychiatry therapeutics.” That entails combining sensing technologies, autonomous robotics and AI to build “a mechanistically anchored simulation of human biology that can predict how drugs will behave in a patient.”
The biotech’s big claims are backed by heavy hitters of the European venture capital scene. Forbion Ventures, Lundbeckfond Invest and Novo Holdings are among the owners of QuantumCell, according to the Danish business registry. First Spark Ventures, a California-based VC shop, is also named as an owner. The board features the Broad Institute’s Kasper Lage, Ph.D., and Forbion’s Marco Boorsma, Ph.D.
For AlzeCure, offloading ACD856 and NeuroRestore eases financial pressures. At the end of March, the biotech lacked the money to fund activities for the next 12 months. Subsequent events have extended AlzeCure’s cash runway, with the company selling stock and outlicensing the Alzheimer's prospect Alzstatin ACD680 to Eli Lilly for $10 million upfront.