Shire swaps three drug programmes for equity in Chronos Therapeutics

Shire has offloaded three pre-clinical development programmes to private drug developer Chronos Therapeutics in return for an equity stake in the Oxford-based company and future royalty rights.

Chronos, which is well funded thanks to a 2013 funding round from investors including Oxford University, Odey Asset Management and the Testudo hedge funds, has acquired three central nervous system programs, including all intellectual property, know-how, development and marketing rights for each programme on a worldwide basis.

In return, FTSE 100-listed Shire has been given an unstated amount of Chronos equity and will receive milestone payments once regulatory approval is gained and royalties and milestone payments on sales if the programs advance and will also have right of first negotiation on each program.

Shire also has rights to re-acquire each of the programmes in the event that Chronos does not invest specified minimum amounts.

The three programmes target fatigue in multiple sclerosis, addictive behaviours and post-traumatic stress disorder.

Shire's move, which emerged late on Wednesday, follows a trend among bigger drug developers to move some drug programmes off their books but keep a stake in their progress.