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DURHAM, N.C. - Precision BioSciences, Inc. (NASDAQ:DTIL), a gene editing company, has received a $13 million convertible note payment as part of a strategic transaction with Imugene Limited (ASX:IMU), the company announced Monday. The payment, which marks the maturity of the note from August 30, 2024, consists of $9.75 million in cash and $3.25 million in Imugene ordinary shares.
The transaction, originally announced in August 2023, involved Imugene assuming global rights to Precision’s cancer therapy azercabtagene zapreleucel (azer-cel) and other CAR T capabilities. In return, Precision received an upfront payment valued at $21 million, including $8 million in cash and the $13 million convertible note. Precision may also receive additional payments dependent on clinical milestones for azer-cel and other future cancer research programs.
Michael Amoroso, President and CEO of Precision BioSciences, expressed satisfaction with Imugene's progress towards a pivotal trial in large B-cell lymphoma (LBCL) for azer-cel, a treatment for patients with significant unmet needs. Amoroso highlighted the company's focus on advancing in-house in vivo gene editing programs, with plans to generate Phase 1 clinical data starting in the first half of 2025 and to file regulatory applications for PBGENE-HBV for chronic hepatitis B later this year.
Precision BioSciences, which specializes in the ARCUS genome editing platform, anticipates that its cash runway, bolstered by the payment from Imugene and other financial resources, will extend into the second half of 2026. As of June 30, 2024, the company had approximately $123.6 million in cash and cash equivalents, prior to receiving the payment from Imugene.
The ARCUS platform allows for sophisticated gene edits such as gene insertion, elimination, and excision, and is being used to develop in vivo gene editing therapies for a range of genetic and infectious diseases with no adequate treatments.
This financial development is based on a press release statement and reflects the ongoing collaboration between Precision BioSciences and Imugene, as well as Precision's strategic focus on in vivo gene editing and its financial outlook.
In other recent news, Precision BioSciences has seen significant developments in its operations. The gene editing company has been added to the Russell Microcap Index, a move that CEO Michael Amoroso believes will enhance visibility among global investors and stimulate interest in the company's gene editing programs. Precision BioSciences also reported progress in its hepatitis B treatment, revealing promising preclinical data for its PBGENE-HBV candidate. This candidate is specific in targeting HBV DNA without affecting the human genome, advancing it to clinical trials as a potential treatment for chronic hepatitis B.
Additionally, Precision BioSciences recently completed a private stock sale to its senior leadership team, raising $300,000 to fund ongoing research and development efforts. In partnership news, Precision BioSciences' collaborator, iECURE, received FDA Fast Track designation for its gene therapy candidate ECUR-506, a treatment for a genetic disorder that can cause severe neurological damage. The gene editing firm's ARCUS platform was used in the development of this therapy. These developments reflect Precision BioSciences' continued efforts to advance gene editing therapies.
InvestingPro Insights
Amidst the strategic developments with Imugene and the progress of Precision BioSciences' gene editing programs, investors may find the latest financial metrics from InvestingPro relevant. With a market capitalization of $78.7 million, Precision BioSciences (NASDAQ:DTIL) demonstrates a notable P/E ratio of 3.45, which adjusts to 5.08 when looking at the last twelve months as of Q2 2024. This figure suggests a valuation that could be appealing to investors seeking companies with lower price multiples relative to earnings.
The company's revenue growth is particularly striking, with an 88.35% increase over the last twelve months as of Q2 2024. This robust growth trajectory is further underscored by a quarterly revenue growth of 152.15% in Q2 2024, indicating that Precision BioSciences is rapidly expanding its financial footprint in the gene editing industry.
From an investment standpoint, two InvestingPro Tips highlight key financial aspects of Precision BioSciences. Firstly, the company holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Secondly, despite a significant return over the last week, with a 12.05% price total return, analysts do not anticipate the company will be profitable this year. This juxtaposition of strong short-term performance against a backdrop of anticipated non-profitability suggests that investors should consider both the company's growth potential and its near-term financial challenges.
For those looking to delve deeper into the financial analysis of Precision BioSciences, InvestingPro offers a suite of additional tips, providing a comprehensive picture of the company's financial health and investment potential. In total, there are 9 more InvestingPro Tips available for investors seeking detailed insights.
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