Precision BioSciences says two deals with TG Therapeutics have $900M potential

In exchange for global rights to azer-cel for autoimmune diseases and indications outside of cancer, Precision will receive upfront and potential near-term economics valued at $17.5 M. The upfront payment of $7.5 M will consist of cash and the purchase of 2,920,816 shares of Precision common stock by TG Therapeutics at a price of 77c per share, a 100% premium to the 30-day volume-weighted average price VWAP prior to purchase. Precision will also receive $2.5 M within 12 months, as an equity investment in Precision’s common stock at 100% premium to the then 30-day VWAP prior to purchase. Upon the achievement of certain near-term clinical milestones, Precision will receive an additional $7.5M payment in cash and the purchase of Precision common stock by TG Therapeutics at a 100% premium to the then current 30-day VWAP. Precision is eligible to receive up to $288 M in additional milestone payments based on the achievement of certain clinical, regulatory, and commercial milestones, in addition to high-single-digit to low-double-digit royalties on net sales…”With this deal and the Imugene oncology collaboration for azer-cel announced in August 2023, Precision has now completed two cell therapy collaborations to realize value from our allogeneic CAR T platform while enabling development of azer-cel for patients in diseases with high unmet need. These transactions are expected to extend our runway and will fund continued development of our wholly owned in vivo gene editing programs. As a result of these two accretive partnerships, Precision has received or is eligible to receive $47M in upfront and potential near-term payments and has the potential to receive more than $900M in development, regulatory and commercial milestone payments,” added management.