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ImmunoCellular Therapeutics to Sell Remaining Preclinical and Clinical Programmes, IP
Friday 19 July 2019

19 July 2019 - California, US-based immune-based therapies developer ImmunoCellular Therapeutics, Ltd. (OTC: IMUC) has inked an agreement with a privately held biotechnology company for the purchase of substantially all of ImmunoCellular's remaining clinical and pre-clinical assets, including its preclinical and clinical programs, technology, intellectual property and know-how., the company said.
ImmunoCellular's therapeutic assets are comprised of ICT-107 (phase 3-ready for glioblastoma), ICT-121 (phase 1 completed for recurrent glioblastoma) and ICT-140 (phase 1/2-ready for ovarian cancer), each of which is a patient-specific dendritic cell-based immunotherapy targeting solid tumors.
Preclinical assets include the Stem-to-T-Cell research programme, which engineers hematopoietic stem cells to generate cytotoxic T cells.
The aggregate purchase price of the assets is USD 1m, payable by the Purchaser in two payments. The first upfront payment of USD 500,000 was received by ImmunoCellular upon closing of the agreement on May 8, 2019, and is non-refundable.
The second, or continuation, payment of USD 500,000 is dependent upon the outcome of certain anticipated discussions between the Purchaser and the US Food and Drug Administration concerning the review and development of clinical asset ICT-107.
ImmunoCellular said the timing of these planned discussions is as of yet undetermined, but is anticipated to be within 120 days from the closing. If the continuing payment is not received by ImmunoCellular, the ownership of all assets purchased by the Purchaser from ImmunoCellular will revert back to ImmunoCellular.
The purchase agreement represents the culmination of a key strategy undertaken by ImmunoCellular in 2018 to explore strategic alternatives, following the decision by the board to discontinue development of its clinical assets, ICT-107, ICT-121 and ICT-140, and to discontinue its research-stage Stem-to-T-Cell programme, due to insufficient resources.
Since 2018, the company said it has been actively engaged in a range of conversations with potential strategic partners to explore strategic alternatives, including a potential merger, consolidation, reorganisation or other business combination, as well as the sale of the company or the company's assets.
Having concluded that the options for continuing operations were limited, a sale of company assets was determined to be a responsible strategy for enhancing shareholder value.
The company plans to continue the process of exploring additional strategic alternatives, including the potential to establish a reverse merger with a private company seeking an expedited route to the public markets, and welcomes inquiries by parties interested in such a potential collaboration.
As of May 31, 2019 ImmunoCellular's liquidity and capital resources remain intact, with cash of USD 1.7m and no debt other than small payables related to its limited operations.
The company cannot guarantee that any actions will be taken as a direct result of its continuing pursuit of additional strategic alternatives.
Details
Date Published: 19/07/2019
Target: ImmunoCellular Therapeutics/most remaining assets
Country: USA
Deal Size: 1m (USD)
Sector: Pharmaceuticals
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor:
Buyer: Undisclosed privately held biotechnology company
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