Bionomics Receives Milestone Payment of AUS$1M from Carina Biotech for BNC101 Partnered Legacy Oncology Program

Rhea-AI Summary

Bionomics (Nasdaq: BNOX) has received a AUS$1M milestone payment from Carina Biotech for their partnered legacy oncology program BNC101. The payment is part of an exclusive worldwide license agreement signed in November 2020 for BNC101, a monoclonal antibody targeting LGR5. Under the agreement, Bionomics could receive up to AUS$118 million in development, regulatory, and commercial milestone payments. Additionally, Bionomics is entitled to royalties ranging from low to mid-single digits on net sales, plus a percentage of sublicensing revenues. The company also highlighted its partnership with Merck for CNS conditions, valued at ~US$500M.

Positive

• Received AUS$1M milestone payment from Carina Biotech
• Potential to receive up to AUS$118M in future milestone payments
• Entitled to royalties on net sales (low to mid-single digits)
• Additional revenue potential from sublicensing agreements

Negative

• None.

Insights

Financial Analyst

The AUS$1M milestone payment represents a positive but modest cash infusion for Bionomics. More significant is the validation of their partnered legacy oncology program and the potential for future revenue streams. The agreement includes up to AUS$118M in milestone payments plus royalties ranging from low to mid-single digits on net sales.

The company's partnership with Merck, valued at approximately $500M, represents a more substantial near-term catalyst with upcoming Phase 2 studies. This dual revenue stream from both oncology and CNS programs demonstrates Bionomics' ability to monetize their research capabilities across different therapeutic areas. The milestone payments and royalty structure provide multiple opportunities for future revenue generation, though timing and success rates remain uncertain.

ADELAIDE, Australia and CAMBRIDGE, Mass., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Bionomics Limited (Nasdaq: BNOX) (Bionomics or Company), a clinical-stage biotechnology company developing novel, first-in-class, allosteric ion channel modulators to treat patients suffering from serious central nervous system (CNS) disorders with high unmet medical need, today announced that it received a milestone payment of AUS$1M from Carina Biotech for BNC101, one of their partnered legacy oncology programs.

On October 30, 2024, Carina Biotech, a clinical-stage immuno-oncology company developing CAR-T and other cell therapies for the treatment of solid cancers, made a milestone payment of AUS$1M to Bionomics. The milestone payment was made under the terms of the exclusive, worldwide license agreement for BNC101, a monoclonal antibody targeting the cancer stem cell antigen LGR5, between the Company and Carina Biotech signed on November 2020. Carina Biotech’s LGR5-targeted CAR-T cell therapy CNA3103 is currently in development for the treatment of metastatic colorectal cancer. Based on the agreement, Bionomics is eligible to receive up to approximately AUS$118 million in certain development, regulatory and commercial milestone payments if Carina Biotech fully develops and markets the new therapy.

“This milestone payment from Carina Biotech is another testament to the strong research capabilities which have spawned from Bionomics’ scientific expertise, and we are very pleased to receive this payment as part of the research collaborations we have ongoing for our legacy oncology program,” said Spyros Papapetropoulos, M.D., Ph.D., President and CEO of Bionomics.“ In addition to the partnered oncology programs we have, our long-standing strategic partnership with Merck for the development of α7 receptor PAMs targeting cognitive dysfunction associated with Alzheimer’s disease and other central nervous system conditions valued at ~US $500M, is quickly advancing and we look forward to its anticipated Phase 2 studies initiation in the near future, triggering a sizable milestone payment for Bionomics.”

Pursuant to the exclusive licensing agreement for BNC101, Carina Biotech is also obligated to pay royalties to Bionomics on its net sales of licensed products, on a country-by-country and product-by-product basis, ranging from the low single digits to the mid-single digits, subject to certain specified deductions. Royalties are payable until the later of expiration of all licensed patents covering the licensed products, or expiration of all data exclusivity with respect to the licensed product. If Carina Biotech enters into one or more sublicensing agreements relating to the licensed product, Bionomics is eligible to receive a percentage of sublicensing revenues.

FOR FURTHER INFORMATION PLEASE CONTACT:

General Rajeev Chandra Company Secretary CoSec@bionomics.com.au	Investor Relations Kevin Gardner kgardner@lifesciadvisors.com	Investor Relations Chris Calabrese ccalabrese@lifesciadvisors.com

About Bionomics Limited

Bionomics (NASDAQ: BNOX) is a clinical-stage biotechnology company developing novel, potential first-in-class, allosteric ion channel modulators to treat patients suffering from serious central nervous system (CNS) disorders with high unmet medical need. Bionomics is advancing its lead drug candidate, BNC210, an oral, proprietary, selective negative allosteric modulator of the α7 nicotinic acetylcholine receptor, for the acute treatment of social anxiety disorder (SAD) and chronic treatment of post-traumatic stress disorder (PTSD). Beyond BNC210, Bionomics has a strategic partnership with Merck & Co., Inc. (known as MSD outside the United States and Canada) with two drugs in early-stage clinical trials for the treatment of cognitive deficits in Alzheimer’s disease and other CNS conditions. Bionomics’ pipeline also includes preclinical assets that target Kv3.1/3.2 and Nav1.7/1.8 ion channels being developed for CNS conditions of high unmet need. www.bionomics.com.au

Forward-Looking Statements
Bionomics cautions that statements included in this press release that are not a description of historical facts are forward-looking statements. Words such as “may,” “could,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “intend,” “predict,” “seek,” “contemplate,” “potential,” “continue” or “project” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements. The forward-looking statements are based on our current beliefs and expectations and include, but are not limited to: the closing of each tranche of the Company’s private placement financing, the achievement of certain milestones for the various tranches, the timely funding to the Company by each investor in the private placement, the timing, size and expectation of the closing of the private placement; and expectations regarding market conditions, the satisfaction of customary closing conditions related to the private placement and the anticipated use of proceeds therefrom; and the Company’s expectation that its current cash, cash equivalents, and marketable securities will fund our operations into the third quarter of 2025. The inclusion of forward-looking statements should not be regarded as a representation by Bionomics that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company’s business and other risks described in the Company’s filings with the Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 20-F filed with the SEC, and its other reports. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Bionomics undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. Further information regarding these and other risks, uncertainties and other factors is included in Bionomics’ filings with the SEC, copies of which are available from the SEC’s website (www.sec.gov) and on Bionomics’ website (www.bionomics.com.au) under the heading “Investor Center.” All forward-looking statements are qualified in their entirety by this cautionary statement. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995. Bionomics expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this press release.

FAQ

What milestone payment did Bionomics (BNOX) receive from Carina Biotech in October 2024?

Bionomics received a milestone payment of AUS$1M from Carina Biotech on October 30, 2024, for their BNC101 program.

How much could Bionomics (BNOX) receive in total milestone payments from the Carina Biotech agreement?

Bionomics could receive up to AUS$118 million in development, regulatory, and commercial milestone payments if Carina Biotech fully develops and markets the therapy.

What royalty rates will Bionomics (BNOX) receive from the Carina Biotech agreement?

Bionomics will receive royalties ranging from low single digits to mid-single digits on net sales of licensed products, subject to certain deductions.