Precision Biosciences and Imugene have concluded a strategic transaction for worldwide rights to Precision’s allogeneic CAR T candidate, Azercabtagene Zapreleucel (azer-cel), for cancer.

Imugene will manage the ongoing clinical implementation of azer-cel for patients with large B-cell lymphoma (LBCL) who have relapsed after autologous CAR T treatment.

The licence also covers an option for the development of up to three other cancer research programmes in the coming years.

Precision will receive upfront funding of $21m, comprising both cash and equity, in return for worldwide rights to azer-cel.

The company could also receive an $8m near-term payment in cash and equity once Phase Ib dosing is successfully completed in the CAR T relapsed LBCL patient group.

Precision will potentially earn $198m in extra milestone payments, along with double-digit royalties based on net sales for azer-cel.

The company can also receive up to $145m in milestone payments and tiered royalties on net sales for each additional research programme chosen by Imugene.

Precision BioSciences CEO Michael Amoroso stated: “We are very pleased to partner with Imugene as they plan to leverage azer-cel’s clinical data package and recent regulatory feedback to continue its path toward a pivotal trial in LBCL and potentially help patients in dire need.

“Our commercial and scientific interests are closely aligned, and we believe Precision’s allogeneic CAR T technology can complement the novel oncology approaches being pursued by Imugene, especially its OnCARlytics platform for solid tumours.”