Date prepared: 07/25/2023
Abbreviated name of the issuer: CELON PHARMA S.A.
Subject: Signing of an agreement for the implementation and co-funding of Celon Pharma S.A.’s project on clinical development of the innovative CPL110 inhibitor in FGFR-dependent solid tumors
Legal basis: Article 17 section 1 of the Market Abuse Regulation (MAR) – inside information.
Content of the report:
The Management Board of Celon Pharma S.A. (the “Company”, “Beneficiary”) hereby informs that on July 25, 2023, an agreement was signed between the Company and the Medical Research Agency (“Agency”, “MRA”) for the implementation and co-funding of the commercial project “Clinical development of the innovative CPL110 inhibitor in FGFR-dependent solid tumors” (the “Agreement” and the “Project”, respectively) as part of the Competition for the development of targeted or personalized medicine based on nucleic acid and small molecule compounds. Information on the purpose and significance of the Project and the fact of it being selected for co-funding has been announced by the Company in current report No. 13/2023 on June 13, 2023.
The total eligible cost of the Project is PLN 39.8 million. Pursuant to the conditions set out in the Agreement, the Agency granted the Beneficiary with co-funding for conducting development works, industrial research and basic research (within the meaning of the Commission Regulation (EU) No. 651/2014 of June 17, 2014 declaring certain types of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, Official Journal of the EU L 187/1 of June 26, 2014 as amended) in the amount not exceeding PLN 19.3 million, which constitutes 48.4% of the total eligible costs of the Project. The co-funding will be transferred in the form of an advance payment or a refund, made in tranches. The project implementation period is December 31, 2027.
In particular, the agreement stipulates that the entirety of copyright, related rights and subsidiary rights to works used in the Project, as well as rights to the results of scientific research or development work resulting from the Project must be vested in the Beneficiary.
In line with the Agreement, after consulting the Agency, the Beneficiary grants the Agency the right to purchase a non-exclusive license for the use of the Project results limited to the territory of the Republic of Poland. In the event that the Agency chooses to purchase the license, the Agency shall have the right to purchase the license at market prices.
In accordance with the provisions of the Agreement, the Beneficiary is obliged to develop, carry out the work and research and commercialize the Project within 3 years from the Project conclusion, and in the event of failure to commercialize the Project, the Beneficiary is obliged to return the entire co-payment it received.
On the basis of current knowledge and its patent purity analysis, the Company does not identify any obstacles to the commercialization of products developed as part of ongoing projects.
The signing of the Agreement provides co-funding for the ongoing clinical development of CPL110 in Phase 2 beyond 2023.