Arcellx logs highest open on cancer treatment deal with Gilead unit

Arcellx

09/12/2022 14:39

** Shares of cancer biotech Arcellex Inc  ACLX.O  start
trade 20.7% higher at $26.16, their highest open since co's
debut 10 months ago 
    ** Arcellex partners with Gilead Sciences Inc  GILD.O 
business Kite to co-develop and co-commercialize CART-ddBCMA,
Arcellex's lead product candidate for cancer immunotherapy
currently in mid-stage trials  urn:newsml:reuters.com:*:nPn6L6KbVa
    ** Immunotherapy is a type of cancer treatment that trains a
patient's immune cells to fight tumors
    ** ACLX will receive upfront cash payment of $225 mln and
$100 mln equity investment; both cos will share costs of
development, trials and commercialization, while Kite will bear
manufacturing costs
    ** Both cos will split U.S. profits from treatment equally;
outside the United States, Kite will commercialize treatment and
ACLX will receive low- to mid-teen royalties on sales
    ** Deal expected to close in Q1 2023
    ** ACLX also enters stock purchase agreement with GILD 
    ** GILD to buy 3.48 mln ACLX shares for $100 mln
    ** Separately, ACLX also announces positive preliminary data
from an early-stage expansion trial of the treatment 
 urn:newsml:reuters.com:*:nPn4w6Ny8a
 (Reporting by Ruhi Soni in Bengaluru;)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))