AstraZeneca PLC (LSE:AZN) has entered into a partnership and investment deal with French gene editing specialist biotech firm Cellectis (NASDAQ:CLLS) which it hopes will speed up the development of new treatments in areas such as cancer, immunology, and rare diseases.
The headline value of the deal is a comparatively modest (by pharma standards) US$105 million. A total of US$25 million will be handed over in cash and US$80 million will come in direct investment.
By early next year, AZ will invest a further US$140 million, taking its holding in Cellectis (NASDAQ:CLLS) to 44%.
Under the terms of the deal, the pair will partner on 10 new cell and gene therapies generating milestone payments of US$70 million to US$220 million.
Assuming all targets are hit this then could cost the Anglo-Swedish drugs giant just shy of US$2.5 billion.
Cellectis, a French biopharmaceutical firm, is at the forefront of cancer immunotherapy through its pioneering work in genome-edited chimeric antigen receptor T-cell (CAR T-cell) technologies.
Founded in 1999 by André Choulika, the company has expanded its global footprint with offices in Paris, New York City, and Raleigh, North Carolina.
Initially focused on Meganuclease-based genome engineering, Cellectis shifted its research to CAR-T technologies, securing multiple partnerships and substantial funding to accelerate its R&D initiatives.
The company utilises T-cells from healthy donors, which are then gene-edited, and has manufacturing capabilities in both Paris and Raleigh.
Marc Dunoyer, AZ's chief strategy officer, said of the deal: "The differentiated capabilities Cellectis has in gene editing and manufacturing complement our in-house expertise and investments made in the past year.
"AstraZeneca continues to advance our ambition in cell therapy for oncology and autoimmune diseases as well as in genomic medicine, which has potential to be transformative for patients with rare diseases."