Caribou Biosciences Enters into Agreements with Pfizer for $25 Million in Financing

Strategic Insights -

Caribou Biosciences, Inc., a biotechnology company developing novel cell therapies, has secured $25 million in financing from Pfizer Inc. through a private placement transaction. The deal represents a significant milestone for Caribou Biosciences, allowing the company to further develop its allogeneic anti-BCMA CAR-T cell therapy, CB-011.

The private placement agreement involves the issuance of 4,690,431 shares of common stock to Pfizer at a purchase price of $5.33 per share. The funds will be used to support the development program for CB-011, which is currently being evaluated in the CaMMouflage clinical trial. The agreement also grants Pfizer certain rights of first negotiation and access to preclinical and clinical data generated as part of the development program.

In addition to the private placement agreement, Caribou Biosciences and Pfizer have entered into a Voting Agreement, which restricts Pfizer's voting rights for certain matters related to the remuneration of directors, directors' insurance, and indemnification or release from liability of directors. The agreement will remain in effect for 12 months from the date of signing.

The deal between Caribou Biosciences and Pfizer underscores the growing importance of cell therapies in the treatment of cancer. CB-011, the company's lead product candidate, targets the BCMA protein, which is a key mediator of the viability of multiple myeloma cells. By securing financing from Pfizer, Caribou Biosciences is well-positioned to advance its development programs and bring new treatments to patients.

Key Takeaways:

  • Caribou Biosciences has secured $25 million in financing from Pfizer through a private placement transaction.
  • The deal involves the issuance of 4,690,431 shares of common stock to Pfizer at a purchase price of $5.33 per share.
  • The funds will be used to support the development program for CB-011, an allogeneic anti-BCMA CAR-T cell therapy currently being evaluated in the CaMMouflage clinical trial.
  • The agreement grants Pfizer certain rights of first negotiation and access to preclinical and clinical data generated as part of the development program.
  • Caribou Biosciences and Pfizer have also entered into a Voting Agreement, which restricts Pfizer's voting rights for certain matters related to the remuneration of directors, directors' insurance, and indemnification or release from liability of directors.

Statistics:

  • $25 million: the amount of financing secured by Caribou Biosciences from Pfizer through the private placement transaction.
  • 4,690,431: the number of shares of common stock issued to Pfizer at a purchase price of $5.33 per share.
  • $5.33: the purchase price per share of common stock issued to Pfizer.
  • 12 months: the duration of the Voting Agreement between Caribou Biosciences and Pfizer.
  • 36 months: the duration of the term of the Information Rights Agreement between Caribou Biosciences and Pfizer.

Sources:

  • Form 8-K filed by Caribou Biosciences, Inc. with the U.S. Securities and Exchange Commission on July 6, 2023.
  • Securities Purchase Agreement between Caribou Biosciences, Inc. and Pfizer Inc., dated June 29, 2023.
  • Voting Agreement between Caribou Biosciences, Inc. and Pfizer Inc., dated June 29, 2023.