SOUTH SAN FRANCISCO, Calif. - Lyell Immunopharma, Inc. (NASDAQ: LYEL), a clinical-stage company specializing in T-cell reprogramming therapies, has completed the acquisition of ImmPACT Bio USA Inc., a clinical-stage cell therapy company. This move is aimed at enhancing Lyell's clinical pipeline with the addition of IMPT-314, an innovative CAR T-cell therapy targeting B-cell non-Hodgkin lymphoma.
The acquisition, announced today, brings together Lyell's next-generation CAR T-cell therapies with ImmPACT's dual-targeting CD19/CD20 CAR T-cell product candidate, IMPT-314. This therapy is expected to enter pivotal development in 2025 for patients with B-cell non-Hodgkin lymphoma who have not yet undergone CAR T-cell therapy.
As part of the acquisition, Dr. Sumant Ramachandra, the former CEO of ImmPACT Bio, has been appointed to Lyell's Board of Directors. Dr. Ramachandra brings extensive experience in developing innovative therapies, having held leadership roles at Baxter International (NYSE:BAX) and Pfizer (NYSE:PFE).
Lyell's President and CEO, Lynn Seely, M.D., expressed enthusiasm for the merged expertise and the potential to transform cancer treatment with advanced cell therapies. Initial data from the Phase 1-2 trial of IMPT-314, conducted on patients treated in the 3rd line CAR-naïve setting, is slated for presentation at a major medical conference later this year.
Rick Klausner, M.D., chair of Lyell's Board of Directors, welcomed Dr. Ramachandra to the board, highlighting his experience and dedication to innovative patient care. Dr. Ramachandra's background includes key positions at Baxter International, Pfizer, and Hospira, as well as clinical experience at Massachusetts General Hospital, Harvard Medical School.
Following the closure of the acquisition, Lyell anticipates that its current cash balance will be sufficient to fund operations into 2027, covering significant clinical milestones for each pipeline program, including the anticipated trial for IMPT-314.
Lyell focuses on developing CAR T-cell therapies designed to produce T cells that resist exhaustion and maintain durable stemness, aiming for consistent, long-lasting clinical responses in patients with solid tumors or hematologic malignancies.
This article is based on a press release statement.
In other recent news, Lyell Immunopharma has made significant strides in its business developments, notably with the acquisition of ImmPACT Biosciences. This acquisition, expected to close in the fourth quarter of 2024, will bolster Lyell's clinical-stage portfolio of cancer-targeting cell therapies. The deal includes a $30 million upfront cash payment, the issuance of 37.5 million shares of Lyell's common stock, and an additional 12.5 million shares upon achieving a specified clinical milestone.
The acquisition introduces ImmPACT's IMPT-314, a dual-targeting CAR T-cell therapy, into Lyell's pipeline. This therapy is currently under trial for large B-cell lymphoma, with data from a multi-center Phase 1/2 trial of IMPT-314 expected to be presented at a major medical meeting in 2024, and a pivotal study anticipated to start in 2025.
Despite the promising data, H.C. Wainwright has maintained a neutral rating on Lyell, citing the competitive nature of the CD19-targeted CAR-T space. However, the firm indicates that further updates from Lyell are necessary before adopting a more positive outlook on the company's prospects. As recent developments unfold, Lyell Immunopharma continues to focus on its strategic goals and the advancement of its clinical-stage portfolio.
InvestingPro Insights
Lyell Immunopharma's recent acquisition of ImmPACT Bio USA Inc. comes at a critical juncture for the company, as reflected in the latest financial data and analyst insights from InvestingPro.
The company's market capitalization stands at $238.85 million, which is relatively modest for a clinical-stage biotech firm. This valuation should be considered in light of Lyell's ambitious expansion through the ImmPACT acquisition.
InvestingPro data reveals that Lyell's revenue for the last twelve months as of Q2 2024 was just $0.05 million, with a staggering revenue decline of 99.89% over the same period. This dramatic drop in revenue underscores the importance of the ImmPACT acquisition in potentially bolstering Lyell's product pipeline and future revenue streams.
An InvestingPro Tip indicates that Lyell is "quickly burning through cash," which aligns with the company's statement about funding operations into 2027. This cash burn rate is typical for clinical-stage biotech companies investing heavily in research and development.
Another relevant InvestingPro Tip notes that Lyell "holds more cash than debt on its balance sheet." This strong liquidity position could provide the financial flexibility needed to support the integration of ImmPACT and the development of IMPT-314.
Investors should note that InvestingPro offers 12 additional tips for Lyell Immunopharma, providing a more comprehensive analysis of the company's financial health and market position.
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