Achilles Therapeutics Announces Sale of Technology Assets to AstraZeneca

Rhea-AI Summary

Achilles Therapeutics (NASDAQ: ACHL) has announced the sale of key technology assets to AstraZeneca for $12 million. The transaction includes the transfer of commercial license for TRACERx data and samples, one of the largest tumor evolution studies with over 3,200 tumor samples from 800+ lung cancer patients. AstraZeneca will also take over Achilles' Material Acquisition Platform (MAP), which has collected tumor tissue and blood samples from nearly 300 cancer patients across multiple solid tumor indications.

This transaction marks the conclusion of Achilles' strategic review announced in September 2024. The company plans to implement additional measures, including workforce reduction and decreasing its Board of Directors size while maintaining Nasdaq and SEC compliance.

Positive

• Sale of technology assets to AstraZeneca for $12 million
• Strategic transaction provides immediate cash inflow

Negative

• Further reduction in employee headcount planned
• Decrease in Board of Directors size
• Divestment of key technology assets may limit future growth potential

Insights

Financial Analyst

The sale of TRACERx and MAP assets to AstraZeneca for $12M represents a strategic liquidation move for Achilles Therapeutics, which had a market cap of approximately $40M. This transaction, while providing immediate cash injection, signals the company's shift away from its original business model following September's strategic review. The deal value represents roughly 30% of Achilles' market capitalization, providing essential capital for the company's restructuring. However, the planned reduction in workforce and board size suggests a significant downsizing operation.

For retail investors, this development likely indicates challenging times ahead for Achilles, as the company appears to be moving toward a lean operational structure. The sale of these valuable research assets, while generating immediate capital, could limit future growth potential and research capabilities. Companies typically sell core assets when facing financial pressures or pivoting their business strategy substantially.

Biotech Research Analyst

The TRACERx database, containing deep sequencing data from over 3,200 tumor samples across 800 lung cancer patients, represents a significant scientific asset. Similarly, the MAP platform's collection of samples from nearly 300 cancer patients across multiple solid tumor types provides valuable research material.

AstraZeneca's acquisition of these assets at a relatively modest price point of $12M suggests they saw an opportunity to acquire valuable research infrastructure at a discount. The extensive patient data and biological samples could accelerate AstraZeneca's oncology R&D efforts, particularly in understanding tumor evolution and developing targeted therapies. For Achilles, divesting these assets indicates a strategic pivot away from their original research direction, potentially limiting their future capabilities in cancer research and development. The transaction effectively transfers valuable intellectual property and research infrastructure to AstraZeneca, strengthening their position in oncology research while potentially weakening Achilles' competitive position in the field.

- Proprietary data and samples from TRACERx and Achilles’ Material Acquisition Platform (MAP) will be transferred to AstraZeneca under the Transaction -

- Conclusion of Strategic Review -

LONDON, Dec. 24, 2024 (GLOBE NEWSWIRE) -- Achilles Therapeutics plc (NASDAQ: ACHL) today announced that it has transferred the commercial license of data and samples from the TRACERx® Non-Small Cell Lung Cancer (NSCLC) study to AstraZeneca (LSE/STO/Nasdaq: AZN). TRACERx (TRAcking Cancer Evolution through therapy (Rx)), led by Professor Charles Swanton at University College London (UCL), UK, is one of the largest tumor evolution studies to generate deep sequencing multi-region and multi-time-point genetic data from over 3,200 tumor samples from over 800 lung cancer patients. As part of the transaction, AstraZeneca will also take over as sponsor of Achilles’ Material Acquisition Platform (MAP), and receive tumor samples and data collected thus far. MAP is a proprietary network that has collected donor tumor tissue and blood from nearly 300 cancer patients undergoing standard-of-care cancer surgery across multiple solid tumor indications, including lung, melanoma, head and neck, renal, bladder, and breast.

“We are pleased that as a leader in Oncology, AstraZeneca recognizes the scientific value of our TRACERx and MAP assets,” said Dr Iraj Ali, CEO of Achilles Therapeutics. “We believe that these assets have the potential to positively impact Oncology R&D and will support the development of new and improved therapies for cancer patients.”

AstraZeneca has agreed to pay Achilles Therapeutics $12M for the assets in total.

BofA Securities provided strategic financial advice to Achilles for the transaction. Completion of this transaction signals the conclusion of Achilles’ strategic review which was announced in September 2024. Achilles now plans to undertake additional measures, including a further reduction in employee headcount and a decrease in the size of its Board of Directors, while remaining compliant with Nasdaq and SEC requirements.

About Achilles Therapeutics

Achilles is a clinical-stage biopharmaceutical company that has been developing AI-powered precision T cell therapies targeting clonal neoantigens: protein markers unique to the individual that are expressed on the surface of every cancer cell. Achilles has used DNA sequencing data from each patient, together with its proprietary PELEUS^TM bioinformatics platform, to identify clonal neoantigens specific to that patient, to enable and support development of product candidates specifically targeting those clonal neoantigens.

About TRACERx

TRACERx (TRAcking Cancer Evolution through therapy (Rx)), led by Professor Charles Swanton at UCL, is one of the largest tumor evolution studies to generate deep sequencing multi-region and multi-time point genetic data from over 3,200 tumor samples from over 800 lung cancer patients. TRACERx has transformed the understanding of tumor evolution and has convincingly shown that tumors originate from a single cell that evolves in a Darwinian manner and the early (clonal) mutations are preserved in all subsequent primary and metastatic tumor cells. The study, which has generated numerous publications, uncovered important mechanisms of cancer evolution and immune evasion by analyzing genetic signatures in lung tumors and tracking how they evolve over time from diagnosis through to relapse. These findings provide the ability to identify a novel class of tumor markers called clonal neoantigens that are present on all tumor cells yet absent from healthy tissue, making them ideal cancer targets. TRACERx represents the largest investment in lung cancer research by Cancer Research UK. 

Forward Looking Statements

This press release contains express or implied forward-looking statements that are based on the Company management's belief and assumptions and on information currently available to the Company’s management. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s clinical trials and the Company’s beliefs about its goals for the discontinued trials; expectations related to the Company’s cash runway and operating expenses and capital expense requirements; the Company’s ability to engage with third parties who are developing alternative modalities to target clonal neoantigens for the treatment of cancers and the Company’s review and evaluation of potential strategic options and their impact on stockholder value. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or the Company’s future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The forward-looking statements in this press release represent the Company’s views as of the date of this press release. We anticipate that subsequent events and developments will cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company has no current intention of doing so except to the extent required by applicable law. You should therefore not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to the date of this press release.

For further information, please contact:

Meru Advisors
Lee M. Stern
lstern@meruadvisors.com

FAQ

How much did AstraZeneca pay for Achilles Therapeutics' (ACHL) technology assets?

AstraZeneca agreed to pay Achilles Therapeutics $12 million for the TRACERx and MAP assets.

What assets did Achilles Therapeutics (ACHL) sell to AstraZeneca in December 2024?

Achilles sold the commercial license of TRACERx data and samples, along with the Material Acquisition Platform (MAP), which includes tumor samples and data from cancer patients.

How many patient samples were included in the ACHL TRACERx study sold to AstraZeneca?

The TRACERx study included over 3,200 tumor samples from more than 800 lung cancer patients.

What organizational changes is Achilles Therapeutics (ACHL) planning after the asset sale?

Achilles is planning a further reduction in employee headcount and a decrease in the size of its Board of Directors while maintaining Nasdaq and SEC compliance.

What was included in Achilles Therapeutics' (ACHL) MAP platform acquisition?

The MAP platform included tumor tissue and blood samples collected from nearly 300 cancer patients across multiple solid tumor indications, including lung, melanoma, head and neck, renal, bladder, and breast.