Advaxis (NASDAQ:ADXS) has entered into a licensing agreement with Knight Therapeutics (TSX:GUD) to commercialize in Canada Advaxis’ product portfolio, including its three lead drug candidates: axalimogene filolisbac (ADXS-HPV) for human papilloma virus-associated cancers, ADXS-PSA for prostate cancer and ADXS-HER2 for HER2 expressing solid tumors.
In connection with the licensing agreement, Knight is purchasing directly from Advaxis 359,454 shares at $13.91 a share, which represents a 7% premium to the price of Advaxis’ common stock at the close on August 25.
In addition, Sectoral Asset Management, a Canadian-based global healthcare investment advisor, is purchasing 1,437,815 shares at $13.91 a share directly from Advaxis on behalf of its clients. The combined gross proceeds to Advaxis from these direct investments are $25-million.
“We are extremely gratified to, in one transaction, monetize a non-core market with a well-established local partner, while simultaneously increasing our cash balance under very favorable terms,” Daniel O’Connor, president and CEO of Advaxis, said in a statement.
“We have added both a key strategic partner in Knight and a top-tier healthcare institutional investor in Sectoral Asset Management,” he added. “The license agreement with Knight is consistent with our strategy of focusing our resources in our core geographies.”
Jonathan Goodman, president and CEO of Knight, said Advaxis’ technology has significant potential to treat a multitude of cancers. “This agreement, as well as our investment in the company, are representative of our confidence in Advaxis’ future prospects.”
