TG Therapeutics Announces Agreement with Precision BioSciences for CAR T Cell Therapy Program
TG Therapeutics Inc.'s stock TGTX rallied 11% early Wednesday, following the announcement of its agreement with microcap Precision BioSciences Inc. DTIL. The agreement grants TG Therapeutics a worldwide license to Precision's Azercabtagene Zapreleucel, or azer-cel, a CAR T cell therapy program focused on autoimmune diseases and non-oncology indications.
Key Details
TG Therapeutics plans to leverage the allogeneic (off the shelf) CAR T program, Azer-cel, for multiple autoimmune indications in the near future. The company aims to file an investigational new drug (IND) application by mid-2024.
Financial Terms
Under the agreement, Precision will receive upfront and near-term payments totaling $17.5 million. These payments include a $7.5 million upfront payment and the purchase of Precision common stock by TG Therapeutics at a 100% premium to the 30-day volume weighted average price (VWAP) prior to the purchase.
Additionally, Precision will receive a further $2.5 million within 12 months as an equity investment, also at a 100% premium to the then VWAP prior to the purchase. Upon reaching specific clinical milestones, Precision will be eligible for an additional $7.5 million in cash and stock based on the same terms.
Milestone Payments and Royalties
Precision may be entitled to receive up to $288 million in payments based on achieving clinical, regulatory, and commercial milestones. Furthermore, Precision will receive high-single-digit to low double-digit royalties on net sales of the therapy.
Precision's stock was down 1.9% premarket.
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