SOUTH SAN FRANCISCO, Calif. - Lyell Immunopharma, Inc. (NASDAQ: LYEL) has announced the definitive acquisition of ImmPACT Bio USA Inc., a move poised to enhance its clinical-stage portfolio of cell therapies targeting cancer. The transaction, expected to close in the fourth quarter of 2024, introduces ImmPACT's IMPT-314, a dual-targeting CD19/CD20 CAR T-cell therapy, into Lyell's pipeline, which is currently under trial for patients with large B-cell lymphoma.
IMPT-314, originally licensed from the University of California, Los Angeles (UCLA), is designed to surpass existing CD19 CAR T-cell therapies in efficacy and persistence. Data from an ongoing Phase 1-2 trial is slated for presentation at a major medical conference later this year, with a pivotal trial commencement anticipated in 2025.
Lyell's strategic refocus will now concentrate on advancing IMPT-314 and LYL119, its other leading CAR T-cell therapy, discontinuing development of LYL797, LYL845, and early-stage TIL programs. This realignment follows a review of clinical data, with Lyell aiming to fund operations into 2027, through significant clinical milestones for its prioritized programs.
The terms of the deal include an upfront payment of $30 million in cash and 37.5 million shares of Lyell common stock. Additional contingent considerations involve 12.5 million shares of Lyell stock upon achieving a clinical milestone and future royalties on net sales in the United States.
Lyell's President and CEO, Lynn Seely, M.D., expressed confidence in the acquisition, highlighting the potential of IMPT-314 to deliver improved outcomes for patients based on preliminary data. Sumant Ramachandra, M.D., Ph.D., CEO of ImmPACT, echoed this sentiment, citing the transaction as validation of their innovative approach to CAR T-cell therapy development.
The acquisition is subject to customary closing conditions, including expiration of the Hart-Scott-Rodino antitrust waiting period. Lyell has engaged Goldman Sachs & Co LLC as its financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor for the transaction, with Cooley LLP representing ImmPACT.
Investors and interested parties can access more information on the investor webcast hosted by Lyell at 4:30 PM ET today. This article is based on a press release statement.
InvestingPro Insights
As Lyell Immunopharma (NASDAQ: LYEL) embarks on this strategic acquisition, InvestingPro data offers valuable context for investors. The company's market capitalization stands at $282.88 million, reflecting its position as a niche player in the biotechnology industry. This acquisition comes at a time when Lyell's stock is trading near its 52-week low, with a price-to-book ratio of 0.5, suggesting the market may be undervaluing the company's assets.
InvestingPro Tips highlight that Lyell holds more cash than debt on its balance sheet, which could provide financial flexibility as it integrates ImmPACT Bio and advances its clinical programs. However, the company is quickly burning through cash, a common characteristic of biotechnology firms investing heavily in research and development.
It's worth noting that analysts anticipate a sales decline for Lyell in the current year, with revenue for the last twelve months as of Q2 2024 at just $0.05 million. This context underscores the importance of the IMPT-314 acquisition in potentially bolstering Lyell's product pipeline and future revenue prospects.
For investors seeking a deeper understanding of Lyell's financial health and market position, InvestingPro offers 11 additional tips, providing a comprehensive analysis to inform investment decisions in this dynamic sector.
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