Benzinga | Mar 22, 2021 08:30AM EDT

Acer Therapeutics Enters Into ACER-001 Development Pact With Relief Therapeutics

Relief Therapeutics Holding AG (OTC:RLFTF) and Acer Therapeutics Inc (NASDAQ: ACER) have entered into a Collaboration and License Agreement for worldwide development and commercialization of ACER-001 for urea cycle disorders (UCDs) and maple syrup urine diseases (MSUD).

* ACER-001 is a proprietary powder formulation of sodium phenylbutyrate designed to be both taste-masked and immediate release.

* Acer will receive an approximately $10 million cash payment.

* Relief will also pay Acer up to $20 million in U.S. development and commercial launch costs for the above indications.

* Acer will retain development and commercialization rights in the U.S., Canada, Brazil, Turkey, and Japan.

* Both the companies will split net profits from Acer's territories 60:40 in favor of Relief.

* Besides, Relief has licensed the rest of the world's rights, where Acer will receive from Relief a 15% revenue royalty.

* Acer may also receive $6 million in development milestone payments following the first European marketing approvals for UCDs and MSUD.

* An ACER-001 pre-NDA meeting with the FDA is scheduled for the second quarter of 2021.

* Price Action: ACER shares are up 20.8% at $4.18 in premarket trading on the last check Monday.