Adaptimmune (ADAP) Up 7%, Gets T-Cell Programs Rights From GSK

Adaptimmune Therapeutics plc ADAP announced entering into a transition agreement with GSK plc GSK to ensure the return of rights and materials comprised within the PRAME and NY-ESO cell therapy programs. The stock of the company was up about 7.1% on Tuesday, following the news.

The PRAME and NY-ESO programs are Adaptimmune’s proprietary cell therapy programs.

In the past year, shares of the company have plunged 38.2% compared with the industry’s 15.2% fall.

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Per the terms of the agreement, Adaptimmune and GSK are collaborating to transition materials and data relating to the PRAME targeted TCR T-cell therapy program — currently in the preclinical stage — to Adaptimmune in 2023. The companies are also planning to transfer the sponsorship, for the GSK IGNYTE-ESO study and a long-term follow-up study, back to Adaptimmune in the third quarter of 2023.

Both parties are collaborating to ensure a hassle-free transition. All other clinical studies within the NY-ESO targeting program have reportedly completed enrollment or will soon be completed by GSK.

Adaptimmune is entitled to an upfront payment, along with milestone-based payments totaling £30 million, for the transfer of the clinical studies for the NY-ESO targeted programs. Management believes that regaining the rights to these T-cell programs will bolster Adaptimmune’s pipeline and its leadership position in the field of engineered TCR T-cells for solid tumors.

In 2023, the company is focused on completing the preclinical development of the PRAME asset. After completing preclinical studies, Adaptimmune plans to file an investigational new drug application to begin clinical studies on a PRAME targeted TCR T-cell therapy.

Per management, PRAME is a highly expressed and validated target across a broad range of solid tumor cancers. It further complements the company’s progress in its MAGE-A4 clinical programs. About the NY-ESO asset, the company plans to continue to evaluate the emerging data to determine the next steps. 

Adaptimmune entered into the collaboration and license agreement with GSK for the development, manufacture and commercialization of T-cell receptors (TCR) therapeutic candidates in May 2014. 

However, the collaboration between the companies was terminated in October 2022. GSK is also liable to pay £5 million to Adaptimmune, following an amendment to the collaboration agreement in December 2022, for the deletion of certain provisions relating to GSK’s post-termination manufacturing and supply obligations.

Adaptimmune Therapeutics PLC Price and Consensus

Adaptimmune Therapeutics PLC Price and ConsensACus

Adaptimmune Therapeutics PLC price-consensus-chart | Adaptimmune Therapeutics PLC Quote

Zacks Rank and Other Stocks to Consider

Adaptimmune currently has a Zacks Rank #2 (Buy).

Some other stocks from the same industry worth mentioning are Aptinyx APTX and ADMA Biologics ADMA, both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 90 days, the Zacks Consensus Estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 47 cents. In the past year, shares of Aptinyx have fallen by 87.5%.

APTX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 6.56%.

In the past 90 days, the consensus estimate for ADMA Biologics’ 2023 loss per share has narrowed from 19 cents to 14 cents. In the past year, shares of ADMA Biologics have increased by 59.1%.

ADMA beat estimates in three out of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 2.88%. 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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