Allarity Therapeutics Secures New EU Commercial Agreement with Potential for Future Growth

Allarity Therapeutics has secured a new commercial agreement with an EU-based biotechnology company for its DRP algorithms for breast cancer, including laboratory services from its Denmark facility. The deal includes purchase commitments for laboratory services over the next year and highlights Allarity's strategy to expand its DRP platform's industry presence. Allarity's stock score is low due to significant financial challenges, including no revenue and consistent operational losses, with a bearish trend and unfavorable valuation metrics.

Allarity Therapeutics, Inc. (NASDAQ: ALLR) has secured a new commercial agreement with an EU-based biotechnology company to expand the utilization of its Drug Response Predictor (DRP) platform in breast cancer treatment. The deal, announced on July 15, 2025, includes a non-exclusive global license for Allarity’s DRP algorithms and laboratory services from its facility in Denmark. The agreement also includes purchase commitments for laboratory services over the next year.

Under the terms of the agreement, Allarity will provide advanced transcriptome analysis services to support the partner’s efforts to deliver precision oncology solutions in breast cancer. The DRP platform uses gene expression profiling to predict individual tumor responses to specific therapies, aiming to improve patient selection and treatment outcomes. This partnership underscores the broad applicability of Allarity’s DRP technology and highlights the company’s commitment to advancing precision oncology.

The agreement is expected to have a minimal impact on Allarity’s financial outlook, according to the company’s CEO, Thomas Jensen. This indicates that while the partnership may contribute to revenue generation, its immediate financial benefits are limited. The agreement also does not provide detailed financial terms, leaving uncertainties regarding the potential profitability or long-term implications for Allarity.

Allarity’s DRP platform has shown an ability to provide a statistically significant prediction of the clinical outcome from drug treatment in cancer patients across dozens of clinical studies. The DRP method builds on the comparison of sensitive vs. resistant human cancer cell lines, including transcriptomic information from cell lines, combined with clinical tumor biology filters and prior clinical trial outcomes. The DRP platform is patented for dozens of anti-cancer drugs and has been extensively published in the peer-reviewed literature.

Stenoparib, a dual-targeted inhibitor of PARP and tankyrase, is a key focus for Allarity. This orally available, small-molecule inhibitor has shown promise in various cancers, particularly advanced ovarian cancer. By inhibiting PARP and blocking WNT pathway activation, stenoparib’s unique therapeutic action shows potential as a promising therapeutic for many cancer types.

Allarity Therapeutics is a clinical-stage biopharmaceutical company dedicated to developing personalized cancer treatments. The company is focused on the development of stenoparib, a novel PARP/tankyrase inhibitor for advanced ovarian cancer patients, using its DRP technology to develop a companion diagnostic that can be used to select those patients expected to derive the greatest clinical benefit from stenoparib. Allarity is headquartered in the U.S., with a research facility in Denmark.

Despite the promising potential of Allarity’s DRP platform, the company faces significant financial challenges, including no revenue and consistent operational losses. The bearish trend and unfavorable valuation metrics have contributed to a low stock score. The company’s forward-looking statements highlight risks and uncertainties related to clinical trial progress, regulatory uncertainties, and operational challenges in laboratory service delivery.

References:
[1] https://www.biospace.com/press-releases/allarity-therapeutics-announces-new-licensing-and-laboratory-services-agreement-to-expand-drp-platform-utilization
[2] https://www.nasdaq.com/articles/allarity-therapeutics-signs-new-licensing-agreement-enhance-drp-platform-and-support