Precision gets initial $7.5M from TG Therapeutics for azer-cel development

Precision BioSciences (DTIL) received an upfront cash payment and equity investment from TG Therapeutics (TGTX) for an exclusive license to develop Azercabtagene Zapreleucel or azer-cel for autoimmune diseases, and other indications outside of cancer. This is the first in a series of payments, with Precision to receive a total of $17.5M in upfront and potential near-term payments as part of the consideration for this license. In exchange for global rights to azer-cel for autoimmune diseases and indications outside of cancer, Precision has received an upfront payment totaling $7.5N, consisting 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 prior to purchase. Precision will also receive an additional $2.5 M within 11 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 also receive an additional $7.5 million payment. Precision is eligible to receive up to $288M in milestone payments in addition to high-single-digit to low-double-digit royalties on net sales. Precision expects that these recent payments from its azer-cel transactions, along with existing cash and cash equivalents, expected operational receipts, continued fiscal and operating discipline, and availability of Precision’s at-the-market ATM facility will extend Precision’s cash runway into the first half of 2026, through phase 1 clinical readouts for its wholly owned programs