Clinical-stage biopharmaceutical company Adaptimmune Therapeutics Plc (ADAP:NASDAQ), which is engaged in developing novel cancer immunotherapy products for individuals with cancer, today announced that "it has entered into a strategic collaboration and license agreement with Genentech, a member of the Roche Holding AG (RHHBY:OTCQX) group to develop and commercialize allogeneic cell therapies to treat multiple oncology indications."
The report indicated that the collaboration partnership between the two companies will encompass two primary components. The first of these objectives is geared toward the development of "off-the-shelf" cell allogeneic T-cell therapies for up to five shared cancer targets and the second is the centered around the development of a personalized allogeneic T-cell therapies platform.
Adaptimmune advised that under the term of the collaboration agreement, it will receive $150 million upfront and another $150 million over the next five years from Genentech. In addition, the agreement provides that the company is eligible to receive additional potential payments exceeding $3 billion in aggregate value if certain unspecified development, regulatory, and commercial milestones are achieved. The firm may also further benefit from additional future tiered royalties across multiple programs.
Adaptimmune Therapeutics' CEO Adrian Rawcliffe remarked, "We are proud to partner with Genentech, given their commitment to patients and science in the cancer immunology field. This collaboration broadens Adaptimmune's leadership position in developing allogeneic cell therapies building on our in-depth knowledge gained from our autologous clinical programs."
"Through this collaboration, our platform will form the basis of a personalized allogeneic cell therapy vision, where any patient can receive a T-cell product for their cancer; a significant step towards our goal of making cell therapies both curative and mainstream," Rawcliffe added.
James Sabry, M.D., Ph.D., global head of Pharma Partnering at the Roche Group commented, "We believe allogeneic cell therapies could be a game-changing approach for developing personalized therapy platforms based on individual cancer patients' unique needs…This partnership, which combines Adaptimmune's allogeneic platform with Genentech's expertise in developing personalized therapies, complements our other efforts to discover and develop personalized cell therapies. It holds the promise to change how we treat cancer and brings us another step closer to making personalized healthcare a reality."
The company stated that for each of the components, "Adaptimmune will be responsible for developing clinical candidates using its induced pluripotent stem cell (iPSC) derived allogeneic platform to produce T-cells (iT cells) and Genentech will be responsible for the input TCRs and subsequent clinical development and commercialization."
The report noted that agreement provides that Adaptimmune will receive tiered royalties on net sales in the mid-single to low-double digits and at its discretion can elect to opt in to a 50/50 U.S. profit/cost share on the newly developed "off-the-shelf" products.
The company stated that some of the details of the agreement such as U.S. net sales may be subject to approvals and clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
Adaptimmune advised that it will be hosting a live virtual update to discuss its allogeneic platform and future development plans on Thursday, September 9, 2021 at 08:00 a.m. EDT (01:00 p.m. BST). The firm advised that those interested in joining the discussion can do so at the link listed under the investors tab on its company website.
Adaptimmune is a clinical-stage biopharmaceutical company based in Oxfordshire, U.K. The firm endeavors to develop novel cancer cell therapy products for people afflicted with cancer. Adaptimmune explained that "its unique Specific Peptide Enhanced Affinity Receptor (SPEAR) T-cell platform enables the engineering of T-cells to target and destroy cancer across multiple solid tumors." The company is presently conducting three ongoing clinical trials evaluating three wholly owned SPEAR T-cells — ADP-A2M4, ADP-A2M4CD8, and ADP-A2AFP — in multiple solid tumor indications.
Adaptimmune Therapeutics started off the day with a market cap of around $768.0 million with approximately 155.5 million shares outstanding and a short interest of about 1.9%. ADAP US-ADR shares opened 23% higher today at $6.10 (+$1.16, +23.48%) over Friday's $4.94 closing price. The stock has traded today between $5.59 to $6.82 per share and is currently trading at $6.57 (+$1.63, +33.00%).
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