Lineage Stock Gains After Licensing Pact With Immunomic Therapeutics For Cancer Immunotherapy Platform

Lineage Cell Therapeutics Inc LCTX has entered into a worldwide license and development collaboration agreement with a privately-held Immunomic Therapeutics Inc (ITI) to manufacture and develop a novel candidate using Lineage's VAC allogeneic cancer immunotherapy platform for glioblastoma multiforme, the most aggressive form of brain cancer.
ITI will assume full and independent clinical and commercial responsibility and further advancement of the program.
Under the terms of the agreement, Lineage will be entitled to upfront payments totaling $2 million anticipated in the first year and up to $67 million in milestone payments.
Lineage also will be eligible to receive royalties up to 10% on net sales of future products.
VAC2 is an allogeneic, or non-patient specific "off-the-shelf," cancer vaccine product candidate designed to stimulate patient immune responses to an antigen commonly expressed in cancerous cells but not in normal adult cells.
Price Action: LCTX shares are up 7.8% at $2.3 in market trading hours on the last check Tuesday.