Relief places a bet on a second product

Ten days after the announcement of a private placement, Relief Therapeutics closed a license agreement for ACER-001, an investigational product being studied for the treatment of patients with UCDs and MSUD. UCDs are a group of disorders caused by genetic mutations that result in a deficiency in one of the six enzymes that catalyze the urea cycle. MSUD is a rare inherited disorder. Left untreated, it can result in neurological damage, mental disability, coma or death. 

Under the terms of the CLA, Acer will receive an approximately $10 million cash payment within 15 business days of CLA execution (originally $14 million, to be offset by repayment of the $4.0 million outstanding balance of the prior loan, plus interest, from Relief to Acer). Relief will also pay Acer up to $20 million in U.S. development and commercial launch costs for the UCDs and MSUD indications. Acer will retain development and commercialization rights in the U.S., Canada, Brazil, Turkey and Japan. The companies will split net profits from Acer’s territories 60%:40% in favor of Relief. In addition, Relief has licensed the rights for the rest of the world, where Acer will receive from Relief a 15% royalty on all revenues received in Relief’s territories. Acer may also receive a total of $6 million in development milestone payments following the first European (EU) marketing approvals for UCDs and MSUD.

A few days ago, Relief announced the closing of a private placement.  A single healthcare-dedicated U.S. institutional investor purchased in a private placement 41,459,370 of Relief common stock at a purchase price of CHF 0.2412 per share. The aggregate gross proceeds from the private placement were approximately CHF 10 million, before deducting the placement agent fees and offering expenses payable by Relief. After the closing Relief announced that it plans to use the net proceeds from the private placement to acquire additional assets to expand and diversify Relief's drug pipeline and for general corporate purposes.