Shares of IMUNON (NASDAQ: IMNN) soared more than 15% today after the company announced it agreed to sell its experimental cancer treatment ThermoDox to VoxelDox Therapeutics in a deal that could generate up to $16.5 million in milestone payments, along with royalties and an equity stake in the acquiring company.

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Under the agreement, IMUNON will receive a 4.76% ownership interest in VoxelDox, contingent on the transaction closing, and could collect additional royalties ranging from 3.5% to 6% on future sales of ThermoDox-related products.

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If you’re unfamiliar, ThermoDox uses a heat-activated delivery system designed to release the chemotherapy drug doxorubicin at a targeted location. The technology packages the drug in microscopic, fat-based particles that release their contents when exposed to elevated temperatures.

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The goal is to deliver chemotherapy more precisely to tumors while limiting exposure to healthy tissue. Clinical trials must now demonstrate whether that approach can improve outcomes for glioblastoma patients.

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Payments and royalties

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For IMUNON, the transaction is primarily about concentrating its resources on a different cancer treatment.

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The company is currently advancing IMNN-001, an experimental DNA-based immunotherapy, through its pivotal Phase 3 OVATION 3 trial in patients with newly diagnosed advanced ovarian cancer.

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Rather than spend additional money developing ThermoDox, IMUNON is transferring that responsibility to VoxelDox while retaining the option to collect milestone payments and royalties if the treatment eventually succeeds.

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IMUNON CEO Stacy Lindborg said the agreement allows the company to potentially recover value from a legacy asset that has already been fully written off.

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