Adaptimmune Sells Cell Therapy Assets to US WorldMeds in $85 Million Deal

Adaptimmune Therapeutics, a struggling cancer cell therapy developer, has announced the sale of its FDA-approved TCR therapy Tecelra and two clinical-stage assets to US WorldMeds in a deal worth up to $85 million. The transaction, unveiled on Monday, marks a significant shift in Adaptimmune's strategy as it seeks to address substantial solvency concerns.

Deal Structure and Financial Impact

The agreement includes an upfront payment of $55 million to Adaptimmune, with the potential for an additional $30 million based on the achievement of regulatory and commercial milestones. This lifeline comes at a critical time for Adaptimmune, which initiated a strategic review in March due to financial uncertainties.

Following the sale, Adaptimmune plans to implement a 62% reduction in its remaining workforce, building upon a previous 29% headcount reduction earlier this year. The company anticipates that these cost-cutting measures will result in savings of $300 million over four years.

Asset Transfer and Organizational Changes

As part of the deal, all employees involved in the commercialization and development of Tecelra, as well as the clinical-stage candidates lete-cel and uza-cel, will transition to US WorldMeds. Adaptimmune will retain possession of two T cell directed therapies currently in preclinical studies.

The transaction has prompted significant organizational changes within Adaptimmune. Chief Medical Officer Elliot Norry and Chief Commercial Officer Cintia Piccina will depart on August 8, while Chief Scientific Officer Joanna Brewer will leave on August 31.

Market Response and Analyst Perspectives

The announcement has had a dramatic impact on Adaptimmune's stock, with shares plummeting by approximately two-thirds to around 10 cents in afternoon trading. While some analysts view the deal as a "net positive" given Adaptimmune's solvency issues, others express disappointment with the deal's size.

Mizuho Securities analyst Graig Suvannavejh noted in a client communication that despite the revenue from the deal and associated cost reductions, it remains unclear whether Adaptimmune's liquidity concerns have been adequately addressed.

Adrian Rawcliffe, CEO of Adaptimmune, stated, "After an extensive review of all strategic alternatives available to Adaptimmune, we are convinced that this transaction represents the best path forward for Adaptimmune, our patients and stakeholders."