Wednesday, Precision BioSciences Inc DTIL announced the completion of a strategic transaction with Imugene Limited for global rights to Azercabtagene Zapreleucel (azer-cel), Precision's lead allogeneic CAR T candidate for cancer.
Imugene will assume ongoing clinical execution for azer-cel in the large B-cell lymphoma (LBCL) population who have relapsed following autologous CAR T treatment.
The license also includes an option to develop up to three other cancer research programs in the future.
HC Wainwright analyst Patrick Trucchio writes that the deal is a clear positive, extending Precision's cash runway through 3Q25 and enabling it to focus exclusively on internal gene editing (ARCUS) programs.
The analyst lowered the price target to $3 from $5 to better reflect the value of the CAR T pipeline.
The analyst assigns a probability of success to the partnered CD-19-targeting allogeneic CAR T program of 20%.
The analyst employs a 12% discount rate and a terminal EBITDA multiple of 6.0x and includes capital raises of between $15-$100 million annually from 2023E to 2026E to fund clinical development and potential commercial launch expenses, which could dilute existing shareholders.
Price Action: DTIL shares are down 14.6% at $0.45 on the last check Thursday.
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