Arcellx surges on cancer treatment deal with Gilead unit

Arcellx

09/12/2022 20:27

(Updates)
    ** Shares of cancer biotech Arcellex Inc  ACLX.O  up ~26% 
at $27.31, hit record high
    ** Company 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
    ** ACLX will receive upfront cash payment of $225 mln and
$100 mln equity investment; both companies will share costs of
development, trials and commercialization, while Kite will bear
manufacturing costs
    ** Both companies 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
    ** View collaboration as "significant positive" for ACLX,
both in terms of strategic partner to launch ddBCMA in 
competitive multiple myeloma market and economic terms of the
deal - brokerage William Blair
    ** 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 prelim data from
early-stage expansion trial of the treatment  urn:newsml:reuters.com:*:nPn4w6Ny8a
    ** ACLX shares up ~63% since Nasdaq debut in February this
year
 (Reporting by Ruhi Soni and Raghav Mahobe in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com; Twitter: https://twitter.com/ruhithere))