Xilio Shares Take Flight Premarket After Gilead Deal
By Colin Kellaher
Shares of Xilio Therapeutics more than tripled in premarket trading Thursday after the clinical-stage biotechnology company unveiled a series of developments, including a licensing agreement with Gilead Sciences that involves an equity investment at a rich premium.
Xilio said Gilead is buying 6.86 million shares at $1.97 apiece, more than triple Wednesday's closing price of 64 cents.
In addition to the $13.5 million equity investment, Gilead is making a $30 million up-front cash payment to Xilio, which is eligible to receive up to $604 million in additional contingent payments under the licensing agreement, which covers its tumor-activated IL-12 program.
Xilio also said it was raising another $11.3 million in a private placement and refocusing its portfolio, resulting in the elimination of 15 jobs, or 21% of its staff.
The Waltham, Mass., which had a market capitalization of about $18.2 million at the close of trading Wednesday, said it expects the moves to extend its cash runway into the second quarter of 2025.
Xilio shares were recently changing hands at $1.95 in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 28, 2024 09:35 ET (13:35 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth