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TC BioPharm eyes expansion with CAR-NK technology LOI

EditorEmilio Ghigini
Published 04/04/2024, 09:10 AM

EDINBURGH - TC BioPharm (Holdings) PLC (NASDAQ: TCBP), a biotech firm specializing in gamma-delta T cell therapies, has announced its intention to acquire new assets to expand its therapeutic platform. The company signed a non-binding letter of intent (LOI) to potentially integrate two allogeneic CAR-NK (Chimeric Antigen Receptor Natural Killer) cell technologies into its portfolio, primarily aimed at solid tumor treatments.

The acquisition targets include a CD-70 CAR NK technology and an HER2 CAR-NK technology, which TC BioPharm believes could be effective as standalone treatments and in combination with its current investigational therapy, TCB-008. The company envisions clinical and manufacturing synergies through this move, leveraging its existing infrastructure and expertise to enhance the development of these technologies.

Natural Killer cells, part of the body's innate immune response, are recognized for their potential in cancer therapy due to their ability to identify and destroy cancer cells without genetic modification, allowing for quicker patient treatment.

TC BioPharm has been granted an exclusive period to negotiate a definitive agreement, although there is no certainty that this will lead to a finalized deal or that the transaction will proceed within the anticipated timeframe. The completion of the proposed acquisition will be contingent upon various conditions, including board approval, sufficient financing, and regulatory consents.

CEO Bryan Kobel expressed optimism, viewing this as an opportunity to position TC BioPharm as a leader in cell therapy and enhance shareholder value. The proposed acquisition is expected to not only broaden the company's cancer treatment options but also offer potential benefits to patients through expanded clinical trials.

TC BioPharm is recognized for its pioneering work in gamma-delta T cell therapies and is currently involved in clinical trials for treating acute myeloid leukemia. The information regarding this LOI is based on a press release statement from TC BioPharm.

InvestingPro Insights

As TC BioPharm (Holdings) PLC (NASDAQ: TCBP) explores the expansion of its therapeutic platform with the potential acquisition of novel CAR-NK cell technologies, the company's financial health and market performance become crucial for investors monitoring the situation. TCBP's strategic moves come at a time when the company's financial data reflects significant challenges.

InvestingPro data indicates a market capitalization of just 1.52 million USD, underscoring the small size of the company within the biotech sector. With a negative Price/Earnings (P/E) ratio of -0.22 for the last twelve months as of Q4 2023, TCBP has struggled to generate profits, which is further highlighted by its substantial negative return on assets of -59.42% during the same period. Additionally, the company's price has dwindled to a mere 2.95% of its 52-week high, with a previous close at 1.27 USD, indicating a significant decline in investor confidence.

Amidst these financial headwinds, TCBP is also grappling with operational challenges. The company's operating income margin has been deeply negative at -409.33% for the last twelve months as of Q4 2023. This is reflective of the company's difficulties in maintaining profitability while investing in research and development for its innovative cancer therapies.

InvestingPro Tips highlight that TCBP holds more cash than debt on its balance sheet, which could provide some financial flexibility in pursuing its acquisition strategy. However, the company is quickly burning through cash, which may raise concerns about its financial sustainability. Additionally, TCBP's stock is characterized by high price volatility, indicating that investors may experience significant fluctuations in share price.

Investors interested in a more detailed analysis can find additional InvestingPro Tips for TCBP, which could offer further insights into the company's financial health and market prospects. For those considering an investment in TCBP or seeking to understand the implications of its latest strategic moves, using the coupon code PRONEWS24 will provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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