Why Is Precision BioSciences Stock Soaring Today?

Precision BioSciences Inc DTIL announced the completion of a strategic transaction with Imugene Limited for global rights to Azercabtagene Zapreleucel (azer-cel), Precision's lead allogeneic CAR T candidate, for cancer. 

Imugene will assume ongoing clinical execution for azer-cel in the large B-cell lymphoma (LBCL) population who have relapsed following autologous CAR T treatment. 

The license also includes an option to develop up to three other cancer research programs in the future.

"We are excited to reach this key inflection point for Precision BioSciences with the achievement of three milestones – first, the completion of a global deal with Imugene for azer-cel in cancer; second, the extension of our expected cash operating runway to greater than two years; and third, our pivot to focus exclusively on in vivo gene editing," said Michael Amoroso, Chief Executive Officer at Precision BioSciences. 

Precision will receive upfront economics valued at $21 million in cash and equity. 

In addition, Precision is eligible for an $8 million near-term payment in cash and equity upon successful completion of the phase 1b dosing in the CAR T relapsed LBCL patient population. 

For azer-cel, Precision is eligible to receive up to $198 million in additional milestone payments and double-digit royalties on net sales. 

For each additional research program selected by Imugene, Precision is eligible for up to $145 million in milestone payments and tiered royalties on net sales.

Precision's PBCAR19B stealth cell and its CAR T assets targeting multiple myeloma and all rights to non-oncology indications for azer-cel remain available for development through partnership only.

Precision expects to reduce its annual operating spend by approximately $20 million from the current base case and is expected to extend Precision's cash runway through Q3 of 2025.

Price Action: DTIL shares are up 15% at $0.61 during the premarket session on the last check Wednesday.