Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 52

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 manner by using CROs and third-party service providers. We will also collaborate closely
with disease specific KOLs to collectively assess and determine the most appropriate indications for all our current and forthcoming
assets.

We
believe that successful Phase II trials of the clinical assets in our pipeline will increase the value of our assets. There is no assurance
that any clinical trials on the assets owned or licensed by us will be successful, however, following a successful Phase II clinical
trial, we would look to licensing opportunities with large biotech or pharmaceutical companies, typically for up-front milestone payments
and royalty income streams for the life of the asset patent. We anticipate using any future royalty income stream to develop our asset
portfolio in combination with other potential sources of financing, including debt or equity financing.

Outside
of our proprietary owned patented clinical assets, AstraZeneca agreed to grant a license to the Company under certain intellectual property
rights controlled by AstraZeneca related to HK-4 Glucokinase activators AZD1656 and AZD5658 in all indications and myeloperoxidase inhibitor
AZD5904 for the treatment, prevention, and prophylaxis of idiopathic male infertility. The Company will be responsible for the development
and commercialization of the Licensed Products under the related License Agreement. The Company is required to use commercially reasonable
efforts to develop and commercialize the Licensed Products.

29

AstraZeneca
has conducted initial pre-clinical and, in some instances, clinical trials on these assets, but has decided to license them for further
development. As the clinical assets have undergone initial pre-clinical and clinical testing conducted by AstraZeneca, we are able to
use the safety data generated in these clinical trials to assess which clinical assets to further develop and for which indications.

Through
this relationship, there are considerable APIs that were manufactured by AstraZeneca (prior to conducting its clinical trials) available
to Conduit. As a result, Conduit may not have to develop the APIs, which is often a time consuming and expensive process, and the APIs
already produced were subject to rigorous quality control measures.

In
collaboration with SARBORG Limited (“Sarborg”), a related party, Conduit intends to leverage an advanced AI and cybernetics
platform to evaluate key deliverables across multiple areas of the Company’s operations, including drug repurposing, drug discovery,
solid-form identification, and clinical trial monitoring.

The Sarborg Agreement entered