SELLAS Life Sciences Stock Plunges After $25M Capital Raise Via Equity, In-Licenses Cancer-Focused CDK9 Inhibitor

GenFleet Therapeutics has granted GFH009 rights to SELLAS Life Sciences Group Inc (NASDAQ:SLS) across all therapeutic and diagnostic uses worldwide outside of Greater China (mainland China, Hong Kong, Macau, and Taiwan). 

• GFH009 is a highly selective small-molecule cyclin-dependent kinase 9 (CDK9) inhibitor.
• GFH009 is currently in Phase 1 trials in the U.S. and China. 
• After completing the Phase 1 trial and achieving a maximum tolerated dose, SELLAS plans to commence a Phase 2 trial of GFH009 combined with venetoclax and azacitidine in acute myeloid leukemia (AML) patients.
• The Company also plans to commence a Phase 1/2 basket clinical trial of monotherapy GFH009 in pediatric soft tissue sarcomas in late 2022 or early 2023, expected to be complete by the end of 2023. 
• GenFleet plans to commence several Phase 2 studies for various hematological malignancies in China.
• SELLAS will pay an upfront payment of $10 million.
• GenFleet will also receive up to $140 million in milestone payments.
• Related: Sellas Life Sciences Shares Jump As China Approves Galinpepimut IND For Blood Cancer.
• Separately, SELLAS Life priced its public offering of 4.6 million shares and accompanying warrants to purchase up to 4.6 million shares at a combined price of $5.40, with gross proceeds of $25 million.
• The warrants have an exercise price of $5.40 per share.
• Price Action: SLS shares closed 37.9% at $4.15 during the premarket session on the last check Friday.