Galera Therapeutics (OTC: GRTX) sells drug portfolio to Biossil

Galera Therapeutics Inc. (OTC: GRTX) announced it has entered into an asset purchase agreement with Toronto-based Biossil Inc. for the sale of its dismutase mimetics portfolio, including avasopasem and rucosopasem compounds.

The deal includes an upfront payment of $3.5 million and potential regulatory and commercial milestones plus contingent value rights totaling up to $105 million. Biossil will assume obligations under Galera’s 2018 agreement with Blackstone Life Sciences, including a 4% royalty if the compounds reach commercialization.

Avasopasem demonstrated results in a 407-patient phase 3 trial for head and neck cancer patients. The compound produced a 16% relative reduction in severe oral mucositis incidence and a 56% reduction in duration when combined with standard chemoradiotherapy. The FDA has granted Fast Track and Breakthrough Therapy designations to avasopasem for reducing radiation-induced oral mucositis.

Following the transaction, Galera will focus on its remaining program, a nitric oxide synthase inhibitor called tilarginine, licensed from Houston Methodist. The compound is currently in a multicenter phase 2 trial for metaplastic breast cancer in combination with alpelisib and nab-paclitaxel. The trial is expanding from Houston Methodist to include the University of Texas MD Anderson Cancer Center and the National Institute of Health Clinical Center.