According to the terms of the agreement, Astellas will invest $25m to buy 8,333,333 shares of common stock of Poseida at $3.00 per share in a private placement and another $25m to license P-MUC1C-ALLO1
Astellas Pharma’s office in Canada. (Credit: Raysonho @ Open Grid Scheduler / Grid Engine from Wikimedia Commons)
Japanese pharmaceutical company Astellas Pharma has announced its plans to strategically invest $50m in US-based Poseida Therapeutics to advance the latter’s promise of redefining cancer cell therapy.
Under the terms of the agreement, out of $50m, Astellas will invest $25m to buy 8,333,333 shares of common stock of Poseida at $3.00 per share in a private placement.
The remaining $25m will be used for a one-time payment of a right of exclusive negotiation and first refusal to license P-MUC1C-ALLO1, one of Poseida’s clinical-stage programmes.
P-MUC1C-ALLO1 is an allogeneic CAR-T cell therapy, which is in Phase 1 development for multiple solid tumour indications.
Additionally, Astellas has been given a board observer seat by Poseida, which entitles it to specific notice rights regarding any prospective change in American firm control as well as the opportunity to attend meetings of the company’s scientific advisory board.
Astellas chief strategy officer Adam Pearson said: “We are pursuing this ambitious goal through innovative and multifunctional modality platforms, using the capabilities at our global R&D sites as well as through partnership with external expert partners.
“We believe that this investment fits strategically with our long-term vision of expanding our capability in immuno-oncology and will ultimately lead to the development of new therapeutics for patients in need of cancer immunotherapy.”
The clinical-stage biotechnology startup Poseida is working to advance a new class of cancer cell treatment and gene therapy medicines using its proprietary genetic editing platforms.
The investment supports the firm’s proprietary technology and cell therapy approach and aids strategic and operational plans.
Poseida Therapeutics CEO Mark Gergen said: “We are excited to enter this strategic relationship with Astellas, a premier biopharmaceutical company that shares our long-term vision that cell and gene therapies represent an exciting growth area for the development of innovative medicines for improving patient care.
“This investment further validates the potential of our proprietary genetic engineering technology platform and cell therapy approach, and we look forward to working with Astellas to advance our shared vision and explore future opportunities for collaboration to further unlock that potential.”