A Navy Yard biotech is selling its first-of-its-kind therapy for rare cancer, along with other assets
The new owner of Adaptimmune's T-cell treatment for a rare form of cancer is expected to offer jobs to most of the 160 people who still work for Adaptimmune in South Philadelphia.
Adaptimmune Therapeutics, a Philadelphia Navy Yard biotech with the first therapy approved by federal regulators that uses patients’ own modified cells to attack a solid tumor, is selling that technology and other assets for $55 million as part of a fundamental restructuring, the company said Monday.
The buyer, US WorldMeds of Louisville, Ky., agreed to pay an additional $30 million if Adaptimmune’s treatment for synovial sarcoma, a relatively rare form of cancer that affects muscles and ligaments, and other treatments in development meet certain milestones.
The sale comes after Adaptimmune cut its 500-member workforce by 29% this year to conserve cash while its board was exploring alternatives for the company. Adaptimmune told financial regulators Monday that it plans to cut its remaining workforce, mostly in the United Kingdom, by an additional 62%.
Adaptimmune was started in England in 2008 and opened a branch in University City to be close to the University of Pennsylvania in 2011. The company raised $175 million in an initial public offering in 2015.
“Adaptimmune has been at the forefront of solid tumor cell therapy and delivering groundbreaking treatments to patients for more than a decade,” Adaptimmune’s CEO Adrian Rawcliffe said in a statement.
» READ MORE: Dispatch Biotherapeutics, a cancer immunotherapy start-up, targets hard-to-treat solid tumors
In addition to Tecelra, Adaptimmune’s treatment for synovial sarcoma, the company anticipates receiving approval for a second treatment next year.
“However, given the financial situation of the company, it is clear that securing the right strategic option was critical to maximize value for all of our stakeholders and importantly ensure our patients continue to receive Tecelra,” Rawcliffe said.
The majority of the 160 people who still work for Adaptimmune at the Navy Yard are expected to receive job offers from US WorldMeds, Rawcliffe said in an email to The Inquirer. They are not counted in the newest job cuts. Tecelra is manufactured at the site in South Philadelphia.
In May, Adaptimmune told investors that it had $4 million in revenue from Tecelra in the first three months of the year and expected $35 million to $45 million in revenue from Tecelra for the full year.
The Tecelra sale is expected to be completed by the end of this week. The cash infusion comes as Adaptimmune is contending with dwindling cash reserves. It reported $59.6 million in reserves on March 31, down from $151.6 million at the end of last year.