DURHAM, N.C. - Precision BioSciences Inc . (NASDAQ: NASDAQ:DTIL), a company specializing in advanced gene editing, has entered into a financial agreement with TG Therapeutics, Inc. (NASDAQ: NASDAQ:TGTX), involving an exclusive license for the development of a gene editing therapy for autoimmune diseases. This deal excludes cancer indications and marks the beginning of a series of payments to Precision totaling $17.5M.
Under the terms of the agreement, Precision BioSciences received an upfront payment of $7.5M, which includes both cash and equity investment. Specifically, TG Therapeutics purchased 2,920,816 shares of Precision common stock at a price of $0.77 per share, a substantial premium over the recent average.
In addition to the initial payment, Precision is set to receive another $2.5M as an equity investment within the next 11 months, priced at a 100% premium over the 30-day volume-weighted average price prior to the purchase. The deal also includes a further $7.5M tied to the achievement of near-term clinical milestones. Precision could potentially earn up to $288M in milestone payments, plus royalties on net sales that range from high-single-digit to low-double-digit percentages.
The financial infusion from TG Therapeutics is expected to extend Precision’s cash runway into the first half of 2026. This projection includes anticipated operational receipts and the use of Precision’s at-the-market (ATM) facility, positioning the company to reach phase 1 clinical readouts for its wholly owned programs.
Precision BioSciences utilizes its proprietary ARCUS genome editing platform, which is distinguished by its unique method of cutting DNA, smaller size, and simpler structure. The company's pipeline includes in vivo gene editing candidates intended to provide durable cures for a variety of genetic and infectious diseases that currently lack adequate treatments.
This strategic licensing agreement reflects both companies' commitment to expanding the application of gene editing therapies beyond oncology, addressing a broader range of medical conditions.
The information in this article is based on a press release statement from Precision BioSciences, Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.