TG Therapeutics Inc.’s stock
TGTX,
rallied 11% early Wednesday, after the biotech said it’s entered an agreement with microcap Precision BioSciencies Inc.
DTIL,
to acquire a worldwide license to that company’s Azercabtagene Zapreleucel, or azer-cel, a CAR T cell therapy program for autoimmune diseases and other non-oncology indications. “Azer-cel is an allogeneic (off the shelf) CAR T program and the Company has near-term plans to evaluate the program in multiple autoimmune indications, with an investigational new drug (IND) filing targeted for mid-2024,” TG Therapeutics said in a statement. Under the terms of the deal, Precision will be entitled to upfront and near-term payments valued at $17.5 million, comprised of an upfront payment of $7.5 million and the purchase of Precision common stock by TG Therapeutics at a 100% premium to the 30-day VWAP (volume weighted average price) prior to purchase. Precision will receive a further $2.5 million due within 12 months as an equity investment in its stock also at a 100% premium to the then VWAP priort to purchase. It will receive another $7.5 million split between cash and stock on those same terms on reaching certain clinical milestones. Precision will also be entitled to up to $288 million in payments based on reaching clinical, regulatory and commercial milestones, along with high-single-digit to low double-digit royalties on net sales. Precision’s stock was down 1.9% premarket.
