CAMBRIDGE, Mass. – Eterna Therapeutics Inc. (NASDAQ:ERNA) and Factor Bioscience Limited have entered into an exclusive license and collaboration agreement to expedite the development of cell therapy products targeting oncology, rare diseases, and autoimmune disorders. Eterna has obtained a worldwide exclusive license to use Factor's cell reprogramming and gene-editing technologies for developing and marketing induced pluripotent stem cell (iPSC)-based therapies, particularly iPSC derived mesenchymal stem cells (iMSC) engineered to express certain cytokines.
Sanjeev Luther, President & CEO of Eterna, expressed enthusiasm about the partnership, emphasizing the company's commitment to advancing treatments for challenging diseases. The collaboration is expected to generate data supporting the efficacy of the licensed drug candidates, moving them towards Investigational New Drug (IND) applications, either by Eterna directly or through third-party sublicensees.
Factor Bioscience, in turn, will receive milestone payments per product candidate and royalties post-commercialization. Matt Angel, Ph.D., CEO of Factor, highlighted Eterna's expertise as pivotal for the development of these cell therapy products.
Eterna Therapeutics is currently focusing on its lead product, ERNA-101, an induced allogenic mesenchymal stem cell product designed for targeting solid tumors, including triple-negative breast cancer and TP53-mutant ovarian cancer. ERNA-101 aims to deliver pro-inflammatory cytokines to the tumor microenvironment to stimulate anti-tumor immunity.
This partnership marks a significant step in the companies' efforts to bring advanced cell therapies to patients. The press release also included forward-looking statements, cautioning about the risks and uncertainties that could affect the actual results, performance, or achievements of Eterna's product candidates. These statements are a reminder of the speculative nature of such developments in the biotechnology industry.
The information for this article is based on a press release statement from Eterna Therapeutics.
In other recent news, Eterna Therapeutics Inc. has entered into an exclusive licensing and collaboration agreement with Factor Bioscience Limited. The agreement grants Eterna exclusive rights to develop certain technologies for cancer, autoimmune disorders, and rare diseases. The collaboration also includes provisions for Factor to supply services and materials to Eterna. This new agreement supersedes two prior arrangements with Factor and Exacis Biotherapeutics Inc.
In a separate development, Eterna Therapeutics is facing the possibility of being delisted from the Nasdaq Stock Market due to an equity shortfall. The company has failed to meet the minimum stockholders' equity requirement of $2.5 million. Despite this, Eterna Therapeutics plans to appeal the decision, which will temporarily delay the suspension of trading.
Lastly, Eterna Therapeutics has announced a significant change in the date of its annual meeting of stockholders, now scheduled for late September. This date represents a major shift from the previous year's timeline. Stockholders intending to participate in the annual meeting or nominate board of director candidates must submit their notice by late August.
InvestingPro Insights
Eterna Therapeutics' ambitious partnership with Factor Bioscience comes at a critical time for the company, as revealed by recent financial data from InvestingPro. The company's revenue for the last twelve months as of Q2 2024 stands at a modest $0.16 million, indicating the early-stage nature of its operations. This aligns with the company's focus on developing its lead product, ERNA-101, which is still in the pre-clinical phase.
InvestingPro Tips highlight some challenges Eterna faces. The company is "quickly burning through cash" and "suffers from weak gross profit margins," with a gross profit margin of -111.11% in the last twelve months. These metrics underscore the capital-intensive nature of biotechnology research and development, especially for companies like Eterna that are yet to bring products to market.
Another InvestingPro Tip notes that "analysts anticipate sales decline in the current year," which may explain the company's eagerness to collaborate with Factor Bioscience to accelerate its product development pipeline. This strategic move could potentially help Eterna overcome its current financial hurdles and move closer to commercialization.
It's worth noting that Eterna's stock has experienced significant volatility, with a -45.05% price return over the last three months. This volatility reflects the speculative nature of biotech investments, particularly for companies in the pre-revenue stage of drug development.
For investors interested in a deeper analysis of Eterna Therapeutics, InvestingPro offers 14 additional tips that could provide valuable insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.