“If what they have is so amazing, why sell it for such a small...

“If what they have is so amazing, why sell it for such a small price.... none of this adds up.”

Precision most likely took the licencing deal offered by Imugene because they didn’t have the capital to take the drug through to FDA approval by themselves.

Milestone payments and 10-15% royalties on sales is pretty standard. Also add in the chance onCARlytics proves successful when partnered with Azer-cel… they go from 10-15% of approx. $40 billion across the life of the drug, to 10-15% of whatever sales can be generated from partnering with onCARlytics (almost certainly well north of $40 billion p/a let alone across the life of the drug combo if successful).

So, hopefully you can see why it’s a pretty good deal for both companies. Also, hopefully helps people understand why it’s so important to TeamImugene to ensure they have enough capital, otherwise they’ll end up having to accept 10-15% rather than something much better, if all goes to plan. No one like share dilution, but 20% dilution of shares is almost certainly better than a paltry licensing deal.