RELIEF THERAPEUTICS Holding SA (SWX:RLF), (OTCQB:RLFTF, RLFTY) (Relief Therapeutics), a biopharmaceutical company committed to delivering innovative treatment options for select specialty, unmet and rare diseases, today announced it has entered into a new exclusive definitive licensing agreement with Acer Therapeutics Inc. (Acer Therapeutics) for the development and commercialization of OLPRUVA (sodium phenylbutyrate, ACER-001) for the treatment of certain urea cycle disorders (UCDs) and other potential indications. This agreement supersedes the March 2021 collaboration and license agreement between the companies, which has been cancelled as part of this new agreement.
"We are very happy to have re-structured our collaboration with Acer Therapeutics which includes provisions that we believe will benefit both parties, and ultimately those suffering from UCDs and other
potential rare metabolic conditions," said Jack Weinstein, chief executive officer of Relief Therapeutics. "Our collective goal with Acer is to maximize the global commercialization of OLPRUVA to ensure as many patients as possible will access to this much needed, differentiated and convenient treatment
Under the terms of the new agreement, Acer Therapeutics will retain development and commercialization rights for OLPRUVA worldwide for the treatment of UCDs and any potential additional indications in the U.S. and other countries worldwide, excluding geographical Europe. Acer Therapeutics will provide Relief Therapeutics with a non-contingent $10 million upfront cash payment and an additional non-contingent $1.5 million cash payment on the one-year anniversary of the agreement. Relief Therapeutics will also receive a 10 percent continuing royalty calculated on the net sales of OLPRUVA in the Acer Therapeutics territory, and 20 percent of any value received by Acer Therapeutics from licensing or divestment transactions relating to OLPRUVA, up to a cumulative amount of an additional $45 million. At the same time, Relief Therapeutics will retain development and commercialization rights for OLPRUVA in geographical Europe, which includes the European Union, Liechtenstein, San Marino, Vatican City, Norway, Iceland, Principality of Monaco, Andorra, Gibraltar, Switzerland, United Kingdom, Albania, Bosnia, Kosovo, Montenegro, Serbia and North Macedonia. Acer Therapeutics will receive from Relief Therapeutics a variable, continuing royalty up to a maximum of 10 percent of the net sales of OLPRUVA and 20 percent of any value received by Relief Therapeutics from sublicensing transactions relating to OLPRUVA in geographical Europe, which going forward exclusively remains Relief Therapeutics' territories to develop and commercialize OLPRUVA.
"Relief Therapeutics remains an ideal partner for OLPRUVA in Europe and we are eager to continue the development and commercialization of our innovative treatment option for those suffering from rare metabolic disorders like UCDs," said Chris Schelling, founder and chief executive officer of Acer Therapeutics.
In addition to the immediate cash influx strengthening Relief Therapeutics' capital position, the transition from a profit-based model to a revenue-based royalty stream model is expected to offer Relief Therapeutics earlier returns, reduce certain associated risks and increase predictability in its royalty income. This will also support Relief Therapeutics' ongoing operations, extending the cash runway and bolster investments in the Company's pipeline, including its efforts to seek approval to commercialize OLPRUVA in geographical Europe.