Shares of Adaptimmune Therapeutics (NASDAQ: ADAP) cratered by more than 20% in pre-market trading on Monday even as the clinical-stage biopharmaceutical company announced the acquisition of TCR² Therapeutics (TCRR) in an all-stock deal.
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Shares of TCRR soared more than 25% in pre-market trading post the announcement.
As a part of this deal, TCR2 shareholders will receive 1.5117 ADAP American Depository Shares (ADS) for each TCR2 share. Following the closing of this transaction, Adaptimmune shareholders will own around 75% of the combined company while TCR2 stockholders will own the remaining 25%. The transaction is expected to close in the second quarter of this year.
With this deal, Adaptimmune aims to “create a preeminent cell therapy company focused on treating solid tumors.”
Adrian Rawcliffe, Adaptimmune’s CEO commented, “This [combination] includes gaining approval for the first engineered TCR T-cell therapy for a solid tumor – afami-cel for the treatment of synovial sarcoma. With our cash runway anticipated to be extended into 2026 and covering multiple clinical catalysts in cancers with significant market potential, the combined company is well placed to develop cell therapies as a mainstream option for people with cancer.”
ADAP also announced its Q4 results with revenues of $11 million, soaring by 87.3% year-over-year, surpassing estimates of $3.75 million. The company’s loss per share narrowed in the fourth quarter to $0.03 versus a loss of $0.04 per share in the same period last year. Analysts were expecting a loss of $0.24 per share.
ADAP stock is down by more than 9% in the past year.
