Adaptimmune: GSK Exercises Option Over NY-ESO SPEAR T-Cell Therapy Program

(RTTNews) - Adaptimmune Therapeutics plc (ADAP) said that GlaxoSmithKline plc (GSK, GSK.L) has exercised its option under a collaboration and license agreement signed in 2014 to exclusively license the right to research, develop, and commercialize Adaptimmune's NY-ESO SPEAR T-cell therapy program.

Adaptimmune will receive up to 48 million pounds, or $61 million, from GSK over the course of the transition period. This includes development milestones of up to 18 million pounds, or $23 million, and the option payment of 30 million pounds, or $38 million, which also allows GSK to nominate two additional targets following completion of the transition.

Successful continuation of development and subsequent commercialization of NY-ESO would trigger additional payments for development milestones, tiered sales milestones, and mid-single to low double-digit royalties on worldwide net sales.

James Noble, Chief Executive Officer at Adaptimmune said, "From a financial perspective, this option exercise extends our cash runway into 2020. We anticipate the transition of NY-ESO to GSK to be completed over the coming months, after which we will focus our clinical resources on delivery and execution from our wholly-owned assets MAGE-A4, MAGE-A10, and AFP."

The company will provide further details in a conference call scheduled for 8:30 AM EDT this morning.