Providence Therapeutics enters into agreements with Everest Medicines to advance mRNA vaccines

CALGARY — Providence Therapeutics Holdings Inc. announced two separate definitive agreements with Everest Medicines Limited, to (i) license rights to Providence’s mRNA COVID-19 vaccine candidates in emerging markets in Asia, including Greater China, Southeast Asia and Pakistan, and (ii) establish a broad, strategic partnership to develop mRNA products globally leveraging Providence’s cutting-edge mRNA technology platform.

Providence’s lead mRNA COVID-19 vaccine candidate, PTX-COVID19-B, currently in Phase 2 clinical trials, has demonstrated that it is generally safe and well tolerated and that the PTX-COVID19-B dosed subjects have high neutralization titers against the original strain of SARS-CoV-2 (G614) in an S protein-typed pseudovirus assay. All subjects produced neutralizing antibodies after the first dose and the levels increased more than 10-fold after the second dose. The sera from PTX-COVID19-B vaccinated subjects also had high neutralization titers against current variants of concern Alpha, Beta and Delta, that compare favorably to currently approved mRNA vaccines.

Providence and Everest will also enter a 50/50 global collaboration under which the parties will develop prophylactic or therapeutic products in two additional indications. The collaboration includes full technology transfer of Providence’s current and future manufacturing processes to Everest.

“I am excited to work with Providence and we share in their passion to make affordable, innovative, high-quality medicines available to patients in need. We believe that mRNA vaccines for COVID19 can provide another option in the armamentarium for fighting this pandemic. The platform will enhance our discovery efforts and will allow us to explore the promise of mRNA therapies for patients across a variety of key disease areas,” said Kerry Blanchard, MD, PhD, Chief Executive Officer of Everest Medicines.

Transaction Terms

Under the terms of the transaction Agreements, Providence will receive the following considerations;

For COVID-19 vaccines:

• US$50 million in initial upfront payment to be paid in cash;
• In China and Singapore, up to US$100 million in profit-sharing on COVID-19 vaccines, and once profit share has reached an aggregate amount of US$100 million, mid to high single-digit royalties, and in Everest Territories outside of China and Singapore, mid-teens royalties on COVID-19 vaccine sales.

For Collaboration Products, Additional Products, and the mRNA technology platform:

• US$50 million in initial upfront payment to be paid in cash;
• Up to US$300 million in future milestone payments to be paid in newly-issued Everest stock, based on the achievement of certain technology transfer, manufacturing, preclinical, development and commercial milestones.