# Cizzle Biotechnology/Bould: Strategic collaboration with SGSC

- Link: https://www.directorstalkinterviews.com/cizzle-biotechnologybould-strategic-collaboration-with-sgsc/4121023627
- Published: 2021-09-21T09:03:53+01:00
- Author: Amilia Stone

**Cizzle Biotechnology plc **(LON:CIZ), focused on cancer diagnostics, was spun 
out of the University of York to exploit the biomarker, variant CIZ1b, for early
detection of different forms of lung cancer. There is high medical need for a simple
blood test, to be used alongside a positive chest scan, that allows early detection
of lung cancer. This should result in a significant reduction in the number of false
positives, reduce the number of scans and improve patient outcomes. As part of its
portfolio expansion and to increase the number of income streams, Cizzle has signed
a commercial and royalty deal with respect to a clinical asset, known as AZD1656.

 * **Strategy:** Cizzle Biotechnology is a diagnostic company that is progressing
   a biomarker diagnostic assay, which aims to deliver a simple blood test for lung
   cancer that can pick up the disease earlier to improve the chances of survival,
   and to greatly reduce the need for unnecessary follow-up tests and tissue biopsies.
 * **SGSC:** Initially, Cizzle signed an MoU with St. George Street Capital (SGSC),
   a UK-based medical charity, to develop a companion diagnostic for one of its 
   clinical assets, also with the potential to earn royalties. This has evolved 
   into two deals, with the commercial and royalty deal signed, giving potential
   royalties of up to £5m.
 * **AZD1656:** AZD1656 is a potent and selective activator of glucokinase that 
   was developed initially by AZN for type II diabetes. Now licensed to SGSC, in
   a recent ARCADIA trial in 150 diabetic patients with COVID-19, AZD1656 was shown
   to have promise and be worthy of further late-stage development.
 * **Risks:** Cizzle is a small company with a single asset and limited resources.
   Portfolio expansion through partnerships is expanding its income opportunities
   and reducing the risk, but success is dependent on further partnerships and out-
   licensing deals being signed, which can take time to be concluded.
 * **Investment summary:** Since Cizzle Biotechnology’s listing, its shares have
   drifted while the market awaits news. Over the past few weeks, Cizzle has announced
   two new collaborations, which have the potential to expand the number and timing
   of income streams. Trading on an EV of just £11.5m, the market seems to be ignoring
   these deals, which suggests that Cizzle has considerable upside potential when
   investors become aware of these and as development progress is made.

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