Caribou soars after Pfizer's $25 million equity investment
06/07/2023 15:39
(Updates)
** Shares of drug developer Caribou Biosciences Inc CRBU.O
jump 59% to $6.48, hits a more-than-four-month high
** Stock is top pct. gainer across U.S. stock exchanges; set
for biggest one-day pct. gain ever, if gains hold
** Co says Pfizer Inc PFE.N has made a $25 mln equity
investment in the company
** PFE purchased 4.69 mln CRBU shares at a price of
$5.33/share, representing a 30.1% premium to CRBU's last close
of $4.08
** Brokerage RBC Capital Markets says the healthy premium on
PFE's investment and the fact that CRBU is retaining ownership
of the product are positives
** CRBU to use the investment proceeds to advance its CAR-T
cell therapy candidate, CB-011, currently being tested in an
early-stage trial to treat a type of cancer that forms in plasma
cells
** CRBU's treatment is made of T-cells, which are white
blood cells that have been genetically altered to make them
better able to spot and attack cancer
** CRBU and PFE on June 29 also entered into an information
rights agreement for CB-011, which has a 36-month term, as per a
regulatory filing
** Including session's gain, stock up ~3% YTD
(Reporting by Pratik Jain and Bhanvi Satija in Bengaluru)
((Pratik.Jain@thomsonreuters.com;))