SELLAS Life Sciences Stock Plunges After $25M Capital Raise Via Equity, In-Licenses Cancer-Focused CDK9 Inhibitor

GenFleet Therapeutics has granted GFH009 rights to SELLAS Life Sciences Group Inc SLS across all therapeutic and diagnostic uses worldwide outside of Greater China (mainland China, Hong Kong, Macau, and Taiwan). 

• GFH009 is a highly selective small-molecule cyclin-dependent kinase 9 (CDK9) inhibitor.
• GFH009 is currently in Phase 1 trials in the U.S. and China. 
• After completing the Phase 1 trial and achieving a maximum tolerated dose, SELLAS plans to commence a Phase 2 trial of GFH009 combined with venetoclax and azacitidine in acute myeloid leukemia (AML) patients.
• The Company also plans to commence a Phase 1/2 basket clinical trial of monotherapy GFH009 in pediatric soft tissue sarcomas in late 2022 or early 2023, expected to be complete by the end of 2023. 
• GenFleet plans to commence several Phase 2 studies for various hematological malignancies in China.
• SELLAS will pay an upfront payment of $10 million.
• GenFleet will also receive up to $140 million in milestone payments.
• Related: Sellas Life Sciences Shares Jump As China Approves Galinpepimut IND For Blood Cancer.
• Separately, SELLAS Life priced its public offering of 4.6 million shares and accompanying warrants to purchase up to 4.6 million shares at a combined price of $5.40, with gross proceeds of $25 million.
• The warrants have an exercise price of $5.40 per share.
• Price Action: SLS shares closed 37.9% at $4.15 during the premarket session on the last check Friday.