LONDON (dpa-AFX) - AstraZeneca Plc. (AZN.L, AZN) said that it agreed to buy all outstanding equity of Neogene Therapeutics for a total consideration of up to $320 million, on a cash and debt free basis.
The deal price includes an initial payment of $200 million on deal closing, and a further up to $120 million in both contingent milestones-based and non-contingent consideration.
Syncona said in a separate press release that its ownership position in Neogene is 8% with upfront cash proceeds for Syncona at closing anticipated to be 16 million pounds.
In addition, the sale of Neogene will potentially generate a further 6 million pounds of proceeds for Syncona, through future milestone payments, which if received would take total proceeds to 22 million pounds.
The transaction is expected to close in the first quarter of 2023, subject to customary closing conditions and regulatory clearances. The transaction does not impact AstraZeneca's financial guidance for 2022.
AstraZeneca noted that Neogene will operate as a wholly owned subsidiary of AstraZeneca, with operations in Amsterdam, the Netherlands and California, US.
Neogene is a global clinical-stage biotechnology company pioneering the discovery, development and manufacturing of next-generation T-cell receptor therapies (TCR-Ts) that offer a novel cell therapy approach for targeting cancer.
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