Autolus Therapeutics (NASDAQ:AUTL) stock is surging higher in trading Monday following news of a major investment in the clinical-stage biopharmaceutical company.
Autolus Therapeutics says that this includes its “CD19 CAR T cell investigational therapy product candidate, obecabtagene autoleucel (obe-cel), as well as next generation product therapies of obe-cel in B-cell malignancies.”
The news release from today notes that $150 million of this financing is for obe-cel development and commercialization. That includes $50 million payable upon closing of the transaction. the rest comes once development and regulatory milestones are reached.
The remaining $100 million in funding comes in the form of stock purchases. Blackstone is purchasing $100 million worth of AUTL stock. This will be via a private placement that doesn’t have the fine details available yet.
Blackstone’s investment in Autolus Therapeutics comes with another benefit for it. It grants BX the right to nominate one member to the company’s Board of Directors.
Dr. Christian Itin, CEO of Autolus Therapeutics, said the following about today’s news.
“Blackstone’s investment and expertise will support the development and preparation for commercialization of obe-cel and put the program and the Company on a strong financial footing as we are approaching the read-out from the potentially pivotal FELIX clinical trial during the course of 2022.”
AUTL stock is seeing heavy trading alongside the investment news. As of this writing, more than 18 million shares of the stock have changed hands. That’s a massive jump from its daily average trading volume of 440,000 shares.
AUTL stock is up 37.4% as of Monday morning.
There’s more stock market news to sink your teeth into below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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