TOKYO - Astellas Pharma Inc. (TSE: 4503) and Poseida Therapeutics, Inc. (NASDAQ: PSTX) have entered a research collaboration and license agreement to develop new cell therapy programs for solid tumors, leveraging Poseida's allogeneic CAR-T platform and Xyphos Biosciences' ACCEL™ technology. Xyphos, a subsidiary of Astellas, will fund the research and oversee the development and potential commercialization of the resulting products.
Under the agreement, Poseida will receive a $50 million upfront payment, with the possibility of additional development, sales milestones, and contingency payments that could total up to $550 million. Additionally, Poseida is eligible for up to low double-digit tiered royalties on net sales.
The collaboration aims to create two convertibleCAR® product candidates from a single Poseida-developed CAR-T construct. These candidates are designed to target solid tumors, which remain a significant challenge in oncology due to their complexity and resilience against many existing cancer therapies.
Kristin Yarema, Ph.D., President and CEO of Poseida, expressed enthusiasm for expanding the relationship with Astellas, highlighting the potential of off-the-shelf cell therapies to meet the significant unmet needs of patients with solid tumor malignancies.
Adam Pearson, Chief Strategy Officer of Astellas, emphasized the synergy between Poseida's genetic editing platforms and the ACCEL™ technology. He expressed confidence that the collaboration would contribute to Astellas' immuno-oncology portfolio and aid in delivering innovative CAR-T cell therapies to cancer patients.
In August 2023, Astellas made a strategic investment in Poseida, supporting its commitment to redefine cancer cell therapy. The current agreement builds on this ongoing partnership and the shared vision of both companies to advance treatment options for cancer patients.
The information in this article is based on a press release statement.
InvestingPro Insights
Astellas Pharma Inc. (TSE: 4503) has been actively expanding its oncology portfolio through strategic collaborations, as seen in its recent agreement with Poseida Therapeutics. InvestingPro data reveals a nuanced financial landscape for Astellas as it ventures into new cell therapy programs. The company's market capitalization stands at $17.4 billion, reflecting its substantial presence in the pharmaceutical industry. Astellas has demonstrated a commitment to growth, with recent revenue figures showing a 5.6% increase over the last twelve months as of Q4 2024, and an even more impressive quarterly revenue growth of 17.04% in Q4 2024.
InvestingPro Tips suggest that Astellas's significant P/E ratio of 160.42 indicates high investor expectations for future earnings growth, which may be bolstered by successful outcomes from its collaboration with Poseida. The adjusted P/E ratio for the last twelve months as of Q4 2024 stands at a more moderate 44.43, suggesting a potential normalization of earnings expectations. Additionally, the company's strong gross profit margin of 81.76% in the same period showcases its ability to maintain profitability amidst its research and development endeavors. Investors interested in the pharmaceutical sector and Astellas's growth trajectory can find additional insights and tips on InvestingPro, which currently lists PRONEWS24 as a coupon code for an extra 10% off on yearly or biyearly Pro and Pro+ subscriptions.
With a dividend yield of 4.59% and a dividend growth of 16.67% in the last twelve months as of Q4 2024, Astellas also appears committed to providing shareholder value through consistent dividend payouts. This financial stability and shareholder return could be a key consideration for investors as Astellas continues to invest in innovative cancer therapies. For a deeper dive into Astellas's financial health and strategic initiatives, InvestingPro offers a comprehensive set of tools and real-time data, including an extensive list of tips to guide investment decisions.
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