Realm Therapeutics is set to sell assets and drop its London stock listing. The actions are part of the biotech’s ongoing efforts to seek a way out of its R&D-triggered troubles.
Pennsylvania-based Realm hit the skids last year when it reported two midphase failures. First, PR013 failed to improve outcomes in patients with allergic conjunctivitis. Then, PR022, a drug with the same active ingredient as PR013, missed the mark in an atopic dermatitis study, prompting Realm to stop investment in all its drug development programs and initiate a strategic review.
The strategic review has now borne fruit. Wound care business Urgo Medical North America is set to pay Realm $10 million (€9 million) for a royalty stream covering 510(k)-cleared anti-itch hydrogel Vashe, plus related equipment and intellectual property. Realm received $2 million from the assets in 2017 and 2018.
Vashe, like the rest of Realm’s assets, is derived from the company’s stabilized high concentration hypochlorous acid platform. Realm, then known as PuriCore, outlicensed the North American rights to the product to SteadMed Medical in 2013. Urgo merged its North American operation with SteadMed last year, giving it the impetus to strike the deal for the Realm royalty stream.
The sale of the assets gives Realm additional options. While talks about deals including the sale of rest of the company are continuing, Realm has begun looking for life science investments. Realm had $19 million in cash and short-term investments at the end of last year. If Realm is unable to find a good way to spend the cash or sell its remaining assets, it will consider winding down the business and returning the money to shareholders.
Realm’s stock currently trades in London and New York but the dual-listing is set to become another casualty of its struggles. Having added a Nasdaq listing before the atopic dermatitis blow up, Realm has decided the costs of its London listing now outweigh the benefits. Realm expects the delisting to occur on March 27, the day before Urgo is due to close its deal for Vashe.