Precision BioSciences, a clinical stage gene editing company utilizing its novel proprietary ARCUS® platform to develop in vivo gene editing therapies for high unmet need diseases, today announced the achievement of a clinical milestone under its license agreement with TG Therapeutics, Inc. (Nasdaq: TGTX). The milestone payment for azercabtagene zapreleucel (azer-cel) was triggered by progress of a Phase 1 clinical trial of azer-cel in progressive forms of multiple sclerosis (MS).
As a result of this milestone event, Precision will receive $7.5 million in proceeds, inclusive of $5.25 million cash and $2.25 million for the purchase of 201,504 shares of Precision common stock by TG Therapeutics at $11.17 per share, pursuant to the terms of the companies’ license agreement. Existing cash and cash equivalents, inclusive of the azer-cel milestone proceeds, continued fiscal and operating discipline, and availability of the ATM facility, are expected to provide sufficient cash runway through 2028.
“We are pleased with TG Therapeutics’ continued advancement of azer-cel in progressive multiple sclerosis and with the achievement of this clinical milestone,” said Michael Amoroso, President and Chief Executive Officer of Precision BioSciences. “Their clinical progress reflects the potential of azer-cel in autoimmune diseases such as multiple sclerosis and underscores the value of our strategic partnering approach. Importantly, it also highlights the additive value of our partnered programs as we enter a catalyst-rich 2026, with multiple potential data and development milestones complementing progress across our wholly-owned in vivo gene editing pipeline.”
In January 2024, Precision BioSciences announced a licensing deal, granting TG Therapeutics exclusive worldwide rights to develop and commercialize azer-cel in autoimmune diseases and other non-oncology indications. Under the agreement, Precision received upfront and potential near-term economics and remains eligible for additional development, regulatory, and commercial milestone payments, as well as royalties on net sales. Precision is eligible to receive up to $288 million in additional milestone payments as well as high-single-digit to low-double-digit royalties on net sales.
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