Lyell Immunopharma secures up to $100 million in private placement

SOUTH SAN FRANCISCO - Lyell Immunopharma, Inc. (NASDAQ:LYEL), whose stock has surged nearly 13% in the past week and appears undervalued according to InvestingPro analysis, announced Friday it has entered into a securities purchase agreement with institutional and accredited investors for a private placement that could raise up to approximately $100 million.

The clinical-stage company, which develops next-generation CAR T-cell therapies for cancer patients and currently maintains a market capitalization of $154 million, expects an initial closing of approximately $50 million of common stock at $13.32 per share to occur around July 25, 2025, subject to customary closing conditions.

Under the agreement, Lyell has the option to require investors to purchase an additional $50 million in common stock or pre-funded warrants upon achieving specific clinical milestones within 12 months of the initial closing. This second closing would be priced at $25.61 per share, with provisions for price adjustments based on market conditions.

Investors also retain the right to purchase their committed amounts at $30.73 per share before the milestone closing occurs.

Lyell plans to use the proceeds, together with existing cash reserves, to fund two pivotal-stage clinical trials of LYL314, its dual-targeting CD19/CD20 CAR T-cell therapy for large B-cell lymphoma. With a strong current ratio of 7.49 and more cash than debt on its balance sheet, though InvestingPro data shows rapid cash burn, the company expects these funds will extend its cash runway into mid-2027, supporting its ongoing PiNACLE pivotal trial through expected data collection and a planned Biologics License Application submission later in 2027.

The financing is also intended to support a Phase 3 randomized controlled trial evaluating LYL314 in second-line treatment settings and the initiation of a clinical trial for a new solid tumor CAR T-cell therapy candidate.

The securities offered in this private placement have not been registered under the Securities Act of 1933 and may not be resold in the United States without registration or an applicable exemption from registration requirements, according to the company’s press release statement. Notably, InvestingPro analysis reveals the stock tends to move opposite to market trends with a beta of -0.24, offering potential diversification benefits. Subscribers can access 10+ additional ProTips and comprehensive financial metrics for deeper analysis.

In other recent news, Lyell Immunopharma reported promising results for its LYL314 therapy in treating large B-cell lymphoma (LBCL). The therapy demonstrated an 88% overall response rate and a 72% complete response rate among patients who received it as a third- or later-line treatment. Notably, 71% of patients who achieved a complete response maintained this status for at least six months. This data was gathered from a multi-center Phase 1/2 trial involving 25 patients. These developments highlight the potential effectiveness of LYL314 in the ongoing battle against LBCL.

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