Ligand Pharmaceuticals has agreed to commit up to $47 million to Avencell Therapeutics in a financing package aimed at advancing the cell therapy company’s pipeline, including lead programs AVC-201 and AVC-203.
The deal is split into two parts: up to $41 million from Ligand in exchange for a royalty on worldwide annual net sales of Avencell’s current and future pipeline assets, and up to $6 million in a concurrent Series C financing. The royalty rate will fall in a mid-single-digit to low-double-digit range, depending on how much capital is ultimately funded.
Ligand said the $41 million commitment will be funded in four tranches. The first tranche is due at closing, while the remaining three are tied to predetermined clinical milestones and other financing conditions.
Avencell’s lead program, AVC-201, is in a Phase 1b expansion trial for relapsed or refractory acute myeloid leukemia. AVC-203 is a Phase 1a program for B-cell malignancies. The company said the new capital will help advance both programs through the clinic.
Avencell was founded in 2021 and combines switchable CAR-T technology with CRISPR/Cas9-based allogeneic engineering. The company says its platform is designed to produce off-the-shelf therapies with greater control over CAR-T activity.
Ligand, based in Jupiter, Florida, said the investment fits its strategy of funding late-stage clinical development in exchange for long-term economic interests. The market has reacted to these announcements by moving the company's shares -0.03% to a price of $298.41. For more information, read the company's full 8-K submission here.
