(CercleFinance.com) – Cellectis soars on the Paris Stock Exchange on Wednesday after unveiling a strategic collaboration with the pharmaceutical giant AstraZeneca, which will allow the latter to take a 22% stake in its capital.
After having been reserved for an increase several times at the very beginning of the session, the action is currently climbing 127%, signing by far the strongest progression in a Parisian market which is slightly increasing (+0.2%).
The agreement with AstraZeneca aims to accelerate the development of a new generation of therapies in areas of high unmet need, such as oncology, immunology and rare diseases.
Under the terms of the agreement, AstraZeneca will leverage Cellectis’ gene editing technologies and manufacturing capabilities to design new cell and gene therapy product candidates.
In this context, 25 genetic targets have been exclusively reserved for AstraZeneca, from which up to 10 product candidates could be explored for development.
AstraZeneca will have an option for an exclusive worldwide license on the product candidates.
Cellectis’ research costs will be covered by AstraZeneca, with the French company expected to receive an upfront payment of $25 million.
Cellectis will also be eligible to receive an option payment to proceed with clinical trials and development, regulatory and commercial milestone payments, totaling between $70 million and $220 million, for each of the 10 product candidates, as well as tiered royalties on sales.
AstraZeneca has also agreed to make an initial investment of $80 million in Cellectis, which will allow it to hold approximately 22% of the capital and 21% of the voting rights.
This protocol provides that AstraZeneca can also make an additional investment of $140 million in Cellectis by subscribing to two future capital increases.