Autolus Therapeutics plc (AUTL) stock is soaring in the premarket: Here’s Why

Shares of the Autolus Therapeutics plc (AUTL) stock soared in the premarket today on November 8, 2021. The stock became bullish after the announcement of a strategic collaboration and financing agreement with BlackStone Life Sciences. AUTL stock price saw a surge of 26.80% to reach $7.05 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 1.59% at closing. Let’s discuss more this stock.

Autolus Therapeutics plc is the biopharmaceutical stock that is focused to treat cancer diseases via the development of T cell therapies. The stock has a current market value of $405.43 million and 440,189 average trading volume.

BlackStone to invest in AUTL stock:

AUTL stock recently announced that it has signed a strategic collaboration and financing agreement with BlackStone Life sciences pursuant to which the latter will invest up to $250 million in the former. This funding will support the advanced development of CD19 CAR T cell investigational therapy product candidate of AUTL stock. The funding will also help Autolus stock in the next generation product therapies of obe-cel in B-cell malignancies.

According to the agreement, BlackStone will invest $150 million as product financing to support the development as well as commercialization of obe-cel development. $50 million will be payable upon the closing of the transaction and the rest of the amount will be payable based on certain developments and regulatory achievements. BlackStone will buy $100 million American Depository Shares of AUTL stock in a private placement subject to customary closing conditions. In connection with the agreement, BlackStone now has a right to nominate the board member of Autolus stock.

Financial View of AUTL stock:

According to third-quarter 2021 financial results, Autolus stock spent $40.4 million in operating expenses in the three months ended September 30, 2021. This compares to net operating expenses of $42.7 million in the same period of the previous year. Research and development expenses were $32.3 million and general and administrative expenses were $8.3 million in the third quarter of 2021. AUTL stock suffered a net loss of $34.0 million in the third quarter of 2021 as compared to $37.3 million for the same tenure of the previous year. By the end of the third quarter, AUTL stock had $173.1 million total in cash as compared to $216.4 million by the end of the second quarter of 2021.

Wrap Up:

AUTL stock has captivated the attention of investors after the announcement of its strategic collaboration and financing agreement with BlackStone. The financing from BlackStone is a good sign for AUTL stock in terms of its clinical developments.