Geneva-based Relief Therapeutics Holding AG agreed to sell its Relief Therapeutics SA unit to SONNET BioTherapeutics Inc.

Sonnet BioTherapeutics is a Princeton, N.J.-based, privately held biotechnology company developing a pipeline of cancer-fighting immunotherapies using its proprietary platform.

Under the deal, Sonnet will issue 7,111,947 common shares to Relief and assume the development of SON-080, or atexakin alfa, a potential treatment of peripheral neuropathy — conditions involving damage to the peripheral nervous system.

Available pre-clinical data for SON-080, licensed by Relief Therapeutics SA from MERCK KGaA's Ares Trading SA subsidiary, showed that the investigational drug has the potential to treat neuropathies. Sonnet will develop atexakin in chemotherapy induced peripheral neuropathy and other indications, including diabetic neuropathy or nerve damage due to diabetes.

Completion of the transaction is expected to occur at the same time as Sonnet's public trading debut, subject to customary closing conditions.