British drugmaker AstraZeneca plans to invest $245 million in a deal with biotechnology company Cellectis to develop next-generation therapeutics in oncology, immunology and rare diseases.
Cellectis shares soar 139.63% in morning trading.
AstraZeneca said Wednesday that it will initially make a $105 million payment to Paris-based Cellectis in the fourth quarter, comprising an $80 million equity investment, for a 22% stake in the company, and $25 million in cash.
AstraZeneca plans to make a further $140 million equity investment, subject to regulatory and other approvals, with a closing in early 2024, taking its total stake in Cellectis to 44%.
AstraZeneca said it plans to leverage Cellectis's gene-editing technologies and manufacturing capabilities to design novel cell and gene therapy products.
Cellectis will be eligible to receive an investigational new drug option fee and various milestone payments ranging from $70 million to up to $220 million for each of 10 candidate products, plus tiered royalties, AstraZeneca said.
AstraZeneca will retain an option for an exclusive license for the products developed under the research collaboration agreement.
