Thursday, November 16, 2023
Arcellx, Inc. (NASDAQ: ACLX) and Kite, a Gilead Company (NASDAQ: GILD), have expanded their collaboration, initially disclosed in December 2022. In this development, Kite has opted to negotiate a license for Arcellx's ARC-SparX program, ACLX-001, designed for multiple myeloma, with a focus on BCMA. Furthermore, the collaboration scope has widened to include lymphomas for Arcellx's CART-ddBCMA.
Arcellx, expressed enthusiasm about the rapid progress of the partnership and the potential of their innovative synthetic binder, the D-Domain, in creating a new category of CAR T therapies. The deepened collaboration involves Kite's investment in ACLX-001 and increased support for CART-ddBCMA, aiming to extend Arcellx's cash position until 2027.
Kite, highlighted the positive momentum of the CART-ddBCMA program and the extension of the collaboration into areas of significant unmet medical need. Kite's increased engagement aims to advance CART-ddBCMA, strengthen the multiple myeloma pipeline, and explore possibilities in lymphoma.
Arcellx will receive a $200 million equity investment, extending its financial runway. Gilead's estimated ownership in Arcellx will be 13%. The transaction includes an $85 million upfront non-dilutive cash payment, potential milestone payments, and is expected to close by the end of 2023, pending regulatory approvals.
The collaboration between Arcellx and Kite is centered on co-developing and co-commercializing CART-ddBCMA for relapsed or refractory multiple myeloma. The asset utilizes the D-Domain to enhance target specificity and binding affinity. Kite will lead commercialization efforts outside the U.S.
The transaction is anticipated to impact Gilead's 2023 EPS by approximately $0.09-$0.11 per share, and legal counsel to Arcellx is provided by Wilson Sonsini Goodrich & Rosati.
Source: prnewswire.com
