Instil Bio’s Subsidiary Discontinues Clinical Development of AXN-2510 and Terminates License and Collaboration Agreement with ImmuneOnco

Rhea-AI Summary

Instil Bio (Nasdaq: TIL) announced that subsidiary Axion Bio has discontinued clinical development of AXN-2510 and that Axion and ImmuneOnco have executed a Termination Agreement ending their license and collaboration for AXN-2510 and AXN-27M on January 6, 2026.

Under the agreement, all rights previously licensed to Axion, including global development and commercial rights outside Greater China, have reverted to ImmuneOnco, with a limited license allowing Axion to wind down its clinical activities for AXN-2510.

Positive

• Rights reversion is contractually clear and complete
• Limited wind-down license preserves controlled closure of AXN-2510 studies

Negative

• Axion discontinued clinical development of AXN-2510
• All global development and commercial rights outside Greater China reverted to ImmuneOnco

Market Reality Check

$6.66 Last Close

Volume Volume 105,301 vs 20-day average 59,827 (relative volume 1.76x) before this news. high

Technical Price $12.29 was trading below 200-day MA at $20.19 prior to the announcement.

Peers on Argus

Peers showed mixed moves pre-news: CHRS +5.11%, CRBU +1.26%, SGMO +0.32%, while NVCT -0.70% and ACOG -5.22%, suggesting stock-specific factors for TIL.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 13	Earnings & update	Negative	-7.2%	Q3 2025 loss, reduced cash balance, continued AXN-2510 development spending.
Sep 10	Clinical data update	Positive	-9.8%	Promising Phase 1 NSCLC data with 35.3% ORR after prior therapies.
Aug 13	Earnings & update	Neutral	+0.5%	Q2 2025 results showing strong cash, higher R&D, and ongoing losses.
Jul 31	Clinical trial data	Positive	-11.1%	Phase 2 NSCLC trial showed high partial response rates and good safety.

Pattern Detected

Positive clinical data for AXN-2510 previously coincided with negative price reactions, while earnings and corporate updates tended to align more closely with fundamental tone, showing a mix of aligned and contrarian responses to news.

Recent Company History

Over the past six months, Instil Bio highlighted progress and investment around AXN-2510/IMM2510, including FDA IND clearance, promising Phase 2 NSCLC efficacy, and a first U.S. Phase 1 dosing. Financial updates on Aug 13 and Nov 13, 2025 emphasized sizable cash balances but ongoing losses and R&D spend. Earlier clinical updates were framed positively yet saw negative price reactions, making today’s discontinuation of AXN-2510 a reversal relative to that prior development trajectory.

Market Pulse Summary

The stock dropped -45.8% in the session following this news. A negative reaction despite earlier enthusiasm for AXN-2510 would fit a narrative shift from growth prospects to program rationalization. Historical AXN-2510 clinical updates averaged moves of 9.86%, often with downside despite positive data. This termination and rights reversion could reinforce concerns seen in prior drawdowns, especially for investors focused on that asset’s role within Instil Bio’s development strategy.

Key Terms

clinical development medical

"has decided to discontinue clinical development of AXN-2510"

Clinical development is the process of testing a medical treatment in people to prove it is safe and works, moving from small early safety checks to larger trials that measure benefit and side effects. For investors it matters because each successful step reduces uncertainty and brings a product closer to regulatory approval and sales—like moving a prototype through road tests before mass production—while failures or delays can dramatically cut expected value.

license and collaboration agreement regulatory

"terminating their license and collaboration agreement for AXN-2510 and AXN-27M"

A license and collaboration agreement is a contract where one party gives another the legal right to use intellectual property (like a drug formula, technology or brand) and both parties agree to work together to develop, make or sell the resulting product. For investors it matters because the deal spells out who pays, who controls development, how future sales and profits are split, and how risks and costs are shared—so it directly affects a company’s potential revenue, expenses and value, like a partnership for building and selling a new product.

AI-generated analysis. Not financial advice.

DALLAS, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Instil Bio, Inc. (Nasdaq: TIL) (“Instil”) today announced that Axion Bio, Inc. (“Axion”), a wholly-owned subsidiary of Instil, has decided to discontinue clinical development of AXN-2510 and that Axion and ImmuneOnco Biopharmaceuticals (Shanghai) Inc. (HKEX: 1541.HK) (“ImmuneOnco”) have entered into an agreement terminating their license and collaboration agreement for AXN-2510 and AXN-27M (“Termination Agreement”).

Under the terms of the Termination Agreement, all rights previously licensed to Axion, including global development and commercial rights outside Greater China, have reverted to ImmuneOnco, subject to a limited license to Axion to wind down its clinical development activities.

About Instil Bio
Instil Bio is a biopharmaceutical company focused on developing novel therapies. For more information visit www.instilbio.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “exploring,” “future,” “intends,” “may,” “plans,” “potential,” “projects,” “targets” and “will” or similar expressions are intended to identify forward-looking statements. Forward-looking statements include express or implied statements concerning Instil's expectations regarding the termination agreement with ImmuneOnco, and other statements that are not historical fact. Forward-looking statements are based on management's current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements, including risks and uncertainties related to discontinuing US clinical development of AXN-2510; risks related to macroeconomic conditions, including as a result of international conflicts and U.S.-China trade and political tensions, as well as interest rates, inflation, tariffs and other factors, which could materially and adversely affect our business and operations and those of our collaborators; the risks and uncertainties associated with the time-consuming and uncertain regulatory approval process and the sufficiency of Instil's cash resources; and other risks and uncertainties affecting Instil's plans and development programs, including those discussed in the section titled “Risk Factors” in Instil's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 filed with the SEC, as well as Instil's other filings with the SEC. These forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as the date hereof, and Instil disclaims any obligation to update these statements except as may be required by law.

Contacts:
Investor Relations:
1-972-499-3350
investorrelations@instilbio.com
www.instilbio.com

Media Relations:
Kimberly Ha
KKH Advisors
917-291-5744
kimberly.ha@kkhadvisors.com

FAQ

What did Instil Bio (TIL) announce on January 6, 2026 about AXN-2510?

Instil said Axion Bio discontinued clinical development of AXN-2510 and terminated the license and collaboration with ImmuneOnco.

Who holds development and commercial rights for AXN-2510 after the termination?

All rights previously licensed to Axion, including global development and commercial rights outside Greater China, reverted to ImmuneOnco.

Does Axion have any remaining permission to work on AXN-2510 after the Termination Agreement?

Yes; Axion retains a limited license solely to wind down its clinical development activities for AXN-2510.

Which programs were affected by the Termination Agreement between Axion and ImmuneOnco?

The agreement terminates the license and collaboration for AXN-2510 and AXN-27M.

When did Instil Bio announce the discontinuation and termination for AXN-2510?

The announcement was made on January 6, 2026.