AstraZeneca is making a significant move to collaborate with Cellectis, despite Cellectis discontinuing its multiple myeloma CAR-T program just five months ago. AstraZeneca will provide over $100 million in upfront cash and equity investment for a 10-candidate partnership.
The collaboration aims to leverage Cellectis’ gene editing technology and manufacturing capabilities to develop a range of cell and gene therapy products. AstraZeneca will have exclusive access to 25 genetic targets, from which up to 10 therapies will be developed. The partnership involves $25 million in upfront cash, an $80 million equity investment in Cellectis, with a memorandum of understanding for a potential additional investment of $140 million.
Cellectis will receive various payments, including an investigational new drug option fee, milestone payments related to development, regulatory approvals, and sales, which could range from $70 million to $220 million per candidate. In case any of the therapies reach the market, Cellectis will also be entitled to a share of the royalties.
The financial boost from AstraZeneca is essential for Cellectis, which had only $89 million in cash reserves at the end of June, with plans for it to last until the third quarter of 2023. The $80 million equity investment will provide AstraZeneca with a 22% stake in Cellectis and 21% of voting rights, indicating AstraZeneca’s confidence in the company.
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AstraZeneca’s decision to invest $5 per share is significantly above Cellectis’ previous trading price of 97 cents. Following the news, Cellectis shares have surged to $2.62 in premarket trading, reinforcing the positive outlook.
The memorandum of understanding regarding the additional $140 million investment will involve two new classes of convertible preferred shares of Cellectis at a price of $5 each. This investment would grant AstraZeneca a substantial 44% stake in Cellectis, along with 30% of voting rights and the ability to nominate two directors to the biotech’s board.
AstraZeneca’s Chief Strategy Officer, Marc Dunoyer, expressed confidence in Cellectis, citing the biotech’s gene editing and manufacturing expertise as valuable additions to AstraZeneca’s capabilities.
This partnership marks a renewed commitment to Cellectis, which had decided to discontinue its multiple myeloma CAR-T candidate, UCARTCS1, in May due to challenges and resource reallocation. The focus has since shifted to three other clinical-stage candidates: UCART22, UCART123, and UCART20x22.
