Arcellx gains on expanded cancer treatments pact with Gilead unit

Arcellx

15/11/2023 12:33

** Shares of cancer-focused cell therapy developer Arcellx
 ACLX.O  up 12.7% at $53.5 premarket 
    ** ACLX and Kite, unit of Gilead Sciences'  GILD.O , report
expansion of existing collaboration, originally announced in Dec
last year
    ** Upon closing, ACLX to receive $200 mln in equity
investment at $61.68/share and also $85 mln upfront cash payment
    ** Kite has exercised its option to negotiate license for
ACLX's experimental therapy ACLX-001 in treating type of blood
cancer, multiple myeloma 
    ** Companies have also expanded the collaboration scope for
Arcellx's lead product candidate for cancer immunotherapy,
CART-ddBCMA, which is being co-developed with Kite, to include
lymphomas 
    ** CART-ddBCMA is currently in pivotal mid-stage trial for
multiple myeloma 
    ** Assuming transaction closes around year-end 2023, 
Gilead's 2023 adj. per share earnings is expected to reduce by
about $0.09-$0.11/share 
    ** Up to Tuesday's close, ACLX up ~53% YTD

 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))