Precision BioSciences updates executive contracts with new severance terms

Published 02/09/2025, 12:24
Precision BioSciences updates executive contracts with new severance terms

Precision BioSciences, Inc. (NASDAQ:DTIL), a biotechnology company with a market capitalization of $57.76 million, announced that on August 26, it entered into amended and restated employment agreements with its Section 16 officers. According to InvestingPro data, the company faces significant financial challenges, with revenue declining 98.56% in the last twelve months. The affected executives are Michael Amoroso, President and Chief Executive Officer; Alex Kelly, Chief Financial Officer; Dario Scimeca, General Counsel and Secretary; and Jeff Smith, Chief Research Officer.

According to a statement released through a SEC filing, the new agreements are similar to previous contracts but now reflect each executive’s current annual base salary and target bonus. The updated agreements also specify that any existing cash severance will be paid as a lump sum.

The contracts include provisions regarding termination without cause in the event of a “change in control” or a “restructuring event,” as defined in the agreements. They also provide for a payment to cover potential additional expenses related to these events.

As part of the changes, Precision BioSciences has established escrow arrangements with JPMorgan Chase Bank, N.A. to fund the cash severance and related expenses for the executives. Interest earned from the escrow account will accrue to the company, and any unused funds will be returned to Precision BioSciences.

The company stated that these amendments are intended to help retain its executive team.

All information in this article is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Precision BioSciences reported promising early results for its experimental gene editing therapy, PBGENE-HBV, aimed at treating chronic hepatitis B. The therapy showed substantial viral reductions in all patients within the lowest dose cohort of its ELIMINATE-B clinical trial, with no serious adverse events related to the treatment. Additionally, the U.S. Food and Drug Administration (FDA) granted Orphan Drug Designation to Precision BioSciences’ PBGENE-DMD treatment for Duchenne muscular dystrophy (DMD). This designation offers benefits such as financial incentives for clinical development and the potential for up to seven years of market exclusivity if the drug receives approval. The company also announced preclinical data for PBGENE-DMD, demonstrating increased dystrophin-positive muscle cells in a DMD mouse model. The study noted up to an 85% increase in dystrophin-positive cells in the calf muscle. These developments highlight Precision BioSciences’ ongoing efforts in advancing gene editing therapies for serious medical conditions.

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