Why Adaptimmune (ADAP) Stock Is Plunging Today - Adaptimmune Therapeutics (NASDAQ:ADAP)

Adaptimmune Therapeutics plc ADAP is merging with TCR² Therapeutics Inc TCRR in an all-stock deal to create a cell therapy company focused on treating solid tumors.
The lead clinical franchises for the combined company utilize engineered T-cell therapies targeting MAGE-A4 and mesothelin.
These targets are expressed on a broad range of solid tumors.
Related: TCR2 Therapeutics Shares Jump After Additional Reponses in Ovarian Cancer, Mesothelioma.
The combined company also has a preclinical pipeline of additional target opportunities, with development initially focused on PRAME and CD70.
With a cash runway extended into early 2026, the new company will keep the Adaptimmune name and be run by the same team led by Adaptimmune CEO Adrian Rawcliffe.
Also Read: GSK Transfers Cell Therapy Program Rights To Adaptimmune, Terminates Second Cell Therapy Pact In A Day
Shareholders of Adaptimmune will emerge as the majority owner of the new company, owning around 75% of the shares.
The transaction is currently expected to close in Q2 2023.
As of December 31, 2022, Adaptimmune had cash and cash equivalents of $108.0 million.
The company reported Q4 sales of $11.03 million, beating the consensus of $4.12 million.
Q4 EPS came in at $(0.18) better than the analyst estimate of $(0.25).
Price Action: ADAP shares are down 20.70% at $1.40, and TCRR shares are up 33.80% at $1.62 on the last check Monday.

Adaptimmune Agrees To Merge With Another Cell Therapy Focused Company