Salarius Plans To Enter $15B Protein Degradation Space With DeuteRx Deal

Salarius Pharmaceuticals Inc SLRX has agreed to acquire an oral, small molecule targeted protein degradation portfolio against cancer from DeuteRx LLC. 

• The acquisition includes a lead drug candidate that Salarius has renamed SP-3164 (formerly DRX-164).
• "This strategic acquisition is a transformative event for Salarius that significantly expands our development pipeline while building upon the momentum of our lead clinical-stage candidate, seclidemstat," stated David Arthur, CEO of Salarius. 
• SP-3164 is a next-generation cereblon-binding molecular glue. Molecular glues are small molecules that commandeer the body's normal protein-degradation processes and induce selective elimination of cancer-causing proteins. 
• Salarius plans to begin the first clinical trial in 2023.
• As part of the agreement, Salarius and DeuteRx will collaborate to complete SP-3164 development activities and collaborate on the R&D of future products.
• Under the agreement terms, DeuteRx will receive an upfront payment consisting of $1.5 million in cash and 1 million shares of restricted stock. 
• SP-3164, DeuteRx is also entitled to receive up to $188 in milestone payments.
• Additionally, DeuteRx is eligible to receive milestone payments of up to $84 million for each of two future products.
• Price Action: SLRX shares traded 1.52% higher at $0.50 premarket on the last check Thursday.