Oncternal Therapeutics Sells ROR1 Programs to Ho'ola Therapeutics, Winds Down Operations

Oncternal Therapeutics, a biotech company focused on developing novel oncology therapies, has announced the sale of its ROR1 programs to Ho'ola Therapeutics for $3 million upfront. This move marks the end of Oncternal's operations and represents a significant shift in the landscape of ROR1-targeted cancer treatments.

Asset Sale and Financial Terms

The deal, which closed on Friday, includes the transfer of two key assets: zilovertamab, an anti-ROR1 antibody that had reached phase 3 trials, and ONCT-808, a CAR-T cell therapy utilizing zilovertamab's binding domain. Ho'ola Therapeutics, a relatively unknown entity in the biotech space, has agreed to pay $3 million upfront, with $750,000 contingent on resolving contractual obligations with third parties.

The agreement also includes potential milestone payments of up to $65 million, broken down as follows:

• $40 million tied to regulatory events
• $20 million linked to a net sales threshold
• $5 million associated with the completion of enrollment in a pivotal trial or submission for approval

Oncternal's Wind-Down and Leadership Changes

Following the asset sale, Oncternal has initiated the process of winding down its operations. The company's directors and remaining employees tendered their resignations upon the deal's closure. Craig Jalbert, an accountant with experience in managing failed biotech companies, has been appointed as the sole executive and board member. His roles include president, CEO, treasurer, and secretary, with the primary responsibility of overseeing the wind-down process and distributing any remaining cash and future milestone payments.

Background and Recent Setbacks

Oncternal's decision to sell its assets and cease operations comes in the wake of significant setbacks experienced in September. The company halted all clinical trials following disappointing data from its androgen receptor inhibitor ONCT-534 and the death of a patient who received ONCT-808. These events led to Oncternal's delisting from Nasdaq in March, signaling the company's declining prospects.

The ROR1 programs, once considered promising, faced challenges in the competitive oncology landscape. Investor enthusiasm waned due to questions about data strength and increasing competition, including a rival ROR1 program from Merck & Co., which features an antibody-drug conjugate using zilovertamab as a targeting molecule.