OncoSec Medical Inc. entered into an agreement with Hong Kong-based China Grand Pharmaceutical & Healthcare Holdings Ltd. to develop and commercialize its cancer therapy Tavo in Asia.
As part of the transaction, the Pennington, N.J.-based biotechnology company will receive a $30 million investment from China Grand Pharmaceutical and its affiliate Sirtex Medical US Holdings Inc. at $2.50 per share.
If the deal gets shareholders' nod, China Grand Pharmaceutical and Sirtex will collectively hold 53% of OncoSec's common shares. In addition, they will be entitled to three seats on the OncoSec board.
The proceeds from the agreement will be used to fund two ongoing clinical trials of Tavo in combination with Merck & Co. Inc.'s Keytruda to treat advanced melanoma.
Moreover, China Grand Pharmaceutical has a 12-month option to buy the rest of OncoSec's common shares for $4.50 apiece.
Grand Decade will have an exclusive license to develop, manufacture, commercialize OncoSec's products in 36 Asian countries, including China. This includes Tavo which has been given orphan drug and fast-track designations in the U.S. and the European Medicines Agency's advanced therapy medicinal product designation.
Torreya Partners LLC is acting as financial adviser and Alston & Bird is serving as legal adviser to OncoSec.
