GSK Walks Away From T-Cell Therapy Pact With Lyell Citing Strategic Actions

  • GSK plc GSK has decided to terminate the License and Collaboration Agreement with Lyell Immunopharma Inc LYEL. The termination is effective on December 24.
  • GSK will discontinue its development of product candidates targeting NY-ESO-1, including the second‑generation candidates incorporating Lyell's genetic and epigenetic reprogramming technologies (LYL132 and LYL331), as well as other second-generation approaches GSK was exploring. 
  • The FDA cleared LYL132 Investigational New Drug (IND) application in January 2022, and the IND for LYL331 has not yet been submitted to the FDA. 
  • Lyell says the termination is not based on these programs' clinical efficacy or safety data.
  • Due to the previously announced stop in enrollment, no patients have been treated with LYL132, and Lyell is discontinuing further work on these programs. 
  • Related: Analyst Sees A Leader In Solid Tumor Cell Therapy In This Stock.
  • The companies announced a five-year collaboration in October 2019 to research and develop potential T-cell therapies that applied Lyell's technologies and cell therapy innovations to CAR or TCR targets. 
  • Lyell received $250 million in the form of a combined upfront payment and equity investment and would have been eligible for technology validation, development, sales milestones, and single-digit royalties on potential future products.
  • Price Action: LYEL shares traded 3.74% lower at $6.18 during the premarket session on the last check Tuesday.
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