Earlier in January, Precision announced the completion of a strategic deal with TG Therapeutics for the exclusive licence to develop azer-cel for autoimmune diseases and other non-cancer indications.
This deal marks the first in a series of payments to Precision in upfront and potential near-term payments.
In return for the worldwide rights to azer-cel for autoimmune applications as well as non-cancer indications, Precision received $7.5m in upfront payment.
The upfront payments include cash and acquisition of 2,920,816 shares of Precision common stock by TG Therapeutics at $0.77 price per share. This stock value is a 100% premium over the 30-day volume-weighted average price before the acquisition.
Precision is also entitled to receive a further equity investment of $2.5m within 11 months, at a 100% premium to the 30-day volume-weighted average price prior to the investment.
Furthermore, on meeting specific near-term clinical milestones, Precision will be eligible to receive another $7.5m.
The agreement also entitles Precision to up to $288m in milestone payments, along with royalty payments on net product sales ranging from high-single-digit to low-double-digit percentages.
Precision anticipates that the recent payments from the azer-cel deals, combined with its current cash, anticipated operational receipts, continued fiscal and operational discipline and the availability of its at-the-market facility, will extend its cash runway into the first half of 2026.
The company plans to execute activities including Phase I clinical readouts for its wholly-owned programmes during this time period.