GSK Walks Away From T-Cell Therapy Pact With Lyell Citing Strategic Actions

GSK plc GSK has decided to terminate the License and Collaboration Agreement with Lyell Immunopharma Inc LYEL. The termination is effective on December 24.
GSK will discontinue its development of product candidates targeting NY-ESO-1, including the second‑generation candidates incorporating Lyell's genetic and epigenetic reprogramming technologies (LYL132 and LYL331), as well as other second-generation approaches GSK was exploring.
The FDA cleared LYL132 Investigational New Drug (IND) application in January 2022, and the IND for LYL331 has not yet been submitted to the FDA.
Lyell says the termination is not based on these programs' clinical efficacy or safety data.
Due to the previously announced stop in enrollment, no patients have been treated with LYL132, and Lyell is discontinuing further work on these programs.
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The companies announced a five-year collaboration in October 2019 to research and develop potential T-cell therapies that applied Lyell's technologies and cell therapy innovations to CAR or TCR targets.
Lyell received $250 million in the form of a combined upfront payment and equity investment and would have been eligible for technology validation, development, sales milestones, and single-digit royalties on potential future products.
Price Action: LYEL shares traded 3.74% lower at $6.18 during the premarket session on the last check Tuesday.