Biotechnology company OS Therapies Inc (NYSE-A: OSTX) announced on Wednesday that it has entered into an agreement to acquire the listeria monocytogenes-based immuno-oncology programs and related intellectual property (IP) assets from Ayala Pharmaceuticals (OTC: ADXS). This acquisition includes a Phase 2 lung cancer program and a Phase 1 prostate cancer program, along with ownership of the underlying IP tied to OS Therapies' lead asset, OST-HER2, which targets osteosarcoma and other HER2-related indications.

The deal consolidates OS Therapies' control over immunotherapy technologies and eliminates milestone payments and royalty obligations related to its HER2-focused programs. The company is concentrating its capital on regulatory approval and commercialization efforts for OST-HER2 in osteosarcoma, which it anticipates filing for Biologics Licensing Authorization (BLA) in the second quarter of 2025. If approved, the BLA could also lead to a Priority Review Voucher (PRV), which the company intends to sell.

As part of the transaction, OS Therapies will pay USD0.5m in cash and issue USD7.5m in common shares to Ayala Pharmaceuticals. The deal is expected to close within 60 days, pending customary closing conditions.

Additionally, OS Therapies has secured USD7.1 m in financing at USD4.00 per share, ensuring it has cash runway through 2026. This financing includes restrictions on issuing shares below USD12.00 for six months.

The company also announced the appointment of Karim Galzahr, managing partner at OKG Capital, to its Board of Directors.

OS Therapies is advancing its lead immunotherapy, OST-HER2, which has received rare paediatric disease, fast-track and orphan drug designations from the FDA. The company is also working on a next-generation antibody-drug conjugate (ADC) platform, expanding its oncology pipeline.