Precision BioSciences Announces Non-Exclusive Patent License Agreement with Caribou Biosciences

Rhea-AI Summary

Precision BioSciences (DTIL) grants Caribou Biosciences a license for gene editing therapy patents. The agreement includes upfront payment, royalties, and milestone payments for commercialization.

Biotechnology Patent Expert

The licensing agreement between Precision BioSciences and Caribou Biosciences represents a strategic collaboration within the biotechnology industry, particularly in the domain of CRISPR and gene editing therapies. The patent family in question pertains to a specific method of gene editing at the TRAC gene locus, which has implications for the development of allogeneic T cell therapies. Allogeneic therapies are designed to be 'off-the-shelf', which contrasts with patient-specific autologous therapies and can lead to more scalable and potentially cost-effective treatments.

From a patent perspective, the breadth of the family with over 20 granted patents provides robust intellectual property protection and a competitive edge. The expiration date of October 2036 gives both Precision and potential licensees a significant window to develop and commercialize therapies, which is critical given the lengthy process of drug development and approval. The structure of the agreement, with upfront payments, royalties on net sales and tiered milestone payments, is fairly standard in the industry and incentivizes ongoing development and commercial success.

Financial Analyst

The financial implications of this licensing deal are multifaceted. Precision BioSciences is set to receive an upfront payment, which will provide immediate capital, likely to support ongoing research and operations. The royalty structure ensures a sustained income stream contingent on the commercial success of the licensed products. This aligns with industry norms where the licensor, in this case Precision, benefits from the licensee's, Caribou's, market performance without bearing the full weight of commercialization risks.

The milestone payments linked to strategic transactions are particularly interesting as they suggest that Precision has negotiated a stake in Caribou's potential growth or acquisition opportunities. This could be a significant source of income if Caribou engages in high-value deals, which is not uncommon in the rapidly consolidating biotech sector. For investors, the deal indicates a proactive approach by Precision to monetize its patent portfolio while potentially providing a glimpse into the company's cash flow projections and risk management strategy.

Market Research Analyst

The gene editing field, especially CRISPR technology, is a rapidly evolving area with significant market potential. The agreement reflects the ongoing trend of collaboration and licensing as a means to accelerate development and bring therapies to market more efficiently. By securing a non-exclusive license, Caribou retains the flexibility to further develop the technology while allowing Precision to potentially license the technology to additional partners, thus maximizing the reach and impact of their intellectual property.

For the industry, such agreements are essential as they can drive innovation through shared resources and expertise. The potential for allogeneic T cell therapies to revolutionize treatment for various diseases also has far-reaching implications for the healthcare market. The deal could signal to other companies the strategic value of similar collaborations, possibly leading to an increase in licensing agreements and partnerships within the sector.

DURHAM, N.C.--(BUSINESS WIRE)-- Precision BioSciences, Inc. (Nasdaq: DTIL), an advanced gene editing company utilizing its novel proprietary ARCUS^® platform to develop in vivo gene editing therapies for sophisticated gene edits, including gene elimination, insertion, and excision, today announced that it had granted Caribou Biosciences, Inc., a leading CRISPR genome-editing cell therapy company, a non-exclusive, worldwide license, with the right to sublicense, to one of Precision’s foundational cell therapy patent families for use with CRISPR in the field of human therapeutics.

The licensed patents and applications relate to Precision’s approach for targeted insertion of a sequence encoding an exogenous antigen binding receptor into the T cell receptor alpha constant (TRAC) gene locus of human T cells via a single gene edit. This approach is proprietary to Precision and results in T cells suitable for allogeneic use. The licensed family, which includes more than 20 granted U.S. and international patents, expires in October 2036.

Under the terms of the agreement, Precision will receive an upfront payment and, upon commercialization by Caribou, royalties on net sales of licensed products. In addition, for each occurrence of certain strategic transactions involving Caribou, Precision is eligible to receive a specific tiered milestone payment.

This patent family is potentially also available for non-exclusive license to other high-quality partners in the cell therapy space.

About Precision BioSciences, Inc.

Precision BioSciences, Inc. is an advanced gene editing company dedicated to improving life (DTIL) with its novel and proprietary ARCUS^® genome editing platform that differs from other technologies in the way it cuts, its smaller size, and its simpler structure. Key capabilities and differentiating characteristics may enable ARCUS nucleases to drive more intended, defined therapeutic outcomes. Using ARCUS, the Company’s pipeline is comprised of in vivo gene editing candidates designed to deliver lasting cures for the broadest range of genetic and infectious diseases where no adequate treatments exist. For more information about Precision BioSciences, please visit www.precisionbiosciences.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, the parties’ expected actions under the license agreement; statements regarding the clinical development and expected safety, efficacy and benefit of our product candidates and gene editing approaches including editing efficiency and differentiating aspects; the suitability of ARCUS nucleases for gene insertion, large gene deletion, and other gene editing approaches; the expected timing of regulatory processes; expectations about our operational initiatives and business strategy; expectations around partnership opportunities; our expected cash runway; expectations about achievement of key milestones and receipt of any milestone, royalty, or other payments; expectations regarding our liquidity and capital resources; and anticipated timing of initial clinical data. In some cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “approach,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “goal,” “intend,” “look,” “may,” “mission,” “plan,” “possible,” “potential,” “predict,” “project,” “pursue,” “should,” “target,” “will,” “would,” or the negative thereof and similar words and expressions.

Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. These statements are neither promises nor guarantees, and involve a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to, our ability to become profitable; our ability to procure sufficient funding to advance our programs; risks associated with our capital requirements, anticipated cash runway, requirements under our current debt instruments and effects of restrictions thereunder, including our ability to raise additional capital due to market conditions and/or our market capitalization; our operating expenses and our ability to predict what those expenses will be; our limited operating history; the progression and success of our programs and product candidates in which we expend our resources; our limited ability or inability to assess the safety and efficacy of our product candidates; the risk that other genome-editing technologies may provide significant advantages over our ARCUS technology; our dependence on our ARCUS technology; the initiation, cost, timing, progress, achievement of milestones and results of research and development activities and preclinical and clinical studies, including clinical trial and investigational new drug applications; public perception about genome editing technology and its applications; competition in the genome editing, biopharmaceutical, and biotechnology fields; our or our collaborators’ or other licensees’ ability to identify, develop and commercialize product candidates; pending and potential product liability lawsuits and penalties against us or our collaborators or other licensees related to our technology and our product candidates; the U.S. and foreign regulatory landscape applicable to our and our collaborators’ or other licensees’ development of product candidates; our or our collaborators’ or other licensees’ ability to advance product candidates into, and successfully design, implement and complete, clinical or field trials; potential manufacturing problems associated with the development or commercialization of any of our product candidates; delays or difficulties in our and our collaborators’ and other licensees’ ability to enroll patients; changes in interim “top-line” and initial data that we announce or publish; if our product candidates do not work as intended or cause undesirable side effects; risks associated with applicable healthcare, data protection, privacy and security regulations and our compliance therewith; our or our licensees’ ability to obtain orphan drug designation or fast track designation for our product candidates or to realize the expected benefits of these designations; our or our collaborators’ or other licensees’ ability to obtain and maintain regulatory approval of our product candidates, and any related restrictions, limitations and/or warnings in the label of an approved product candidate; the rate and degree of market acceptance of any of our product candidates; our ability to effectively manage the growth of our operations; our ability to attract, retain, and motivate executives and personnel; effects of system failures and security breaches; insurance expenses and exposure to uninsured liabilities; effects of tax rules; effects of the COVID-19 pandemic and variants thereof, or any pandemic, epidemic, or outbreak of an infectious disease; the success of our existing collaboration agreements, and our ability to enter into new collaboration arrangements; our current and future relationships with and reliance on third parties including suppliers and manufacturers; our ability to obtain and maintain intellectual property protection for our technology and any of our product candidates; potential litigation relating to infringement or misappropriation of intellectual property rights; effects of natural and manmade disasters, public health emergencies and other natural catastrophic events; effects of sustained inflation, supply chain disruptions and major central bank policy actions; market and economic conditions; risks related to ownership of our common stock, including fluctuations in our stock price; our ability to meet the requirements of and maintain listing of our common stock on Nasdaq or other public stock exchanges; and other important factors discussed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, as any such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website under SEC Filings at investor.precisionbiosciences.com.

All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we have no obligation to update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240220120724/en/

Investor and Media Contact:

Naresh Tanna

Vice President of Investor Relations

naresh.tanna@precisionbiosciences.com

Source: Precision BioSciences, Inc.

FAQ

What company granted the license to Caribou Biosciences for gene editing therapy patents?

Precision BioSciences (DTIL)

What is the nature of the license granted by Precision BioSciences to Caribou Biosciences?

A non-exclusive, worldwide license with the right to sublicense to one of Precision's foundational cell therapy patent families for use with CRISPR in the field of human therapeutics.

What is the duration of the licensed patents and applications granted to Caribou Biosciences?

The licensed family, including more than 20 granted U.S. and international patents, expires in October 2036.

What are the financial terms of the agreement between Precision BioSciences and Caribou Biosciences?

Under the terms of the agreement, Precision will receive an upfront payment, royalties on net sales of licensed products upon commercialization by Caribou, and specific tiered milestone payments for certain strategic transactions involving Caribou.

What is the potential availability of the licensed patent family to other partners in the cell therapy space?

The patent family is potentially available for non-exclusive license to other high-quality partners in the cell therapy space.