Why Is Cancer Player Cellectis Stock Trading Over 100% Higher Today?

Cellectis SA CLLS shares are trading higher after the company announced a research agreement with AstraZeneca Plc AZN 

AstraZeneca will leverage Cellectis' gene editing technologies and manufacturing capabilities to design cell and gene therapy candidate products. 

As part of the agreement, 25 genetic targets have been exclusively reserved for AstraZeneca, from which up to 10 candidate products could be explored for development. 

AstraZeneca will have an option for a worldwide exclusive license on the candidate products, to be exercised before IND filing.

AstraZeneca and Cellectis will fund Cellectis' research costs under the collaboration and will receive an upfront payment of $25 million. 

Cellectis is also eligible to receive an investigational new drug (IND) option fee and development, regulatory, and sales-related milestone payments, ranging from $70 million up to $220 million per each of the ten candidate products, plus tiered royalties.

AstraZeneca has agreed to make an initial equity investment of $80 million in Cellectis by subscribing for 16 million shares at $5.00 per share. 

Additionally, the MOU contemplates that AstraZeneca will make a potential further equity investment in Cellectis of $140 million by subscribing for two newly created classes of convertible preferred shares of Cellectis: 10,000,000 "class A" convertible preferred shares and 18,000,000 "class B" convertible preferred shares, in each case at $5.00 per share.

Immediately following the additional investment, it is anticipated that AstraZeneca would own approximately 44% of the share capital of the company and 30% of the voting rights.

Price Action: CLLS shares are up 185.60% at $2.78 on the last check Wednesday.