Seattle-based biotech Atossa Therapeutics Inc. (Nasdaq: ATOS) has paid $3 million for exclusive rights to negotiate an acquisition of an unnamed company, according to a regulatory filing.
The filing notes the negotiation period lasts until Nov. 1. If no agreement is reached and no adverse event has occurred, Atossa will pay an additional $2 million to acquire a 19.99% stake in the company, according to the filing.
The filing says the unnamed company is "a venture-capital backed, private company based in the United States that is in the pre-clinical stage of developing novel chimeric antigen receptor (CAR) T-cell therapies based on technology licensed from a leading U.S.adult and pediatric cancer treatment and research institution."
The target company must also "address certain matters related to personnel, operations and intellectual property" to satisfy the agreement.
CAR T-cells are immune cells that are grown in a lab and used as a cancer treatment. Kyle Guse, chief financial officer at Atossa, said although Atossa can't name the company it is targeting, Atossa is looking to broaden its pipeline.
"We view immunotherapy, including CAR T-cell therapy, as an area that could have a lot of appeal to our investors," Guse said. "We do have a fair amount of cash on our balance sheet, which will help support an acquisition, either this one or another one. It fits in nicely with our broader strategy."
Atossa, founded in 2009, has treatments in both breast cancer and Covid-19 that are undergoing clinical trials. Steven Quay has led the company as CEO and president since its founding.
Guse said Atossa's Covid-19 treatments are still in development despite the availability of vaccines, but its lead program is its breast cancer treatment. He added that the potential acquisition could help Atossa expand beyond breast cancer.
The filing notes Atossa, which went public in 2012, is not obligated to complete the acquisition. Guse said Atossa can't provide a more specific timeline beyond the Nov. 1 deadline, and the company can't provide specifics on how much it might pay. He added that Atossa has raised over $150 million through various financings over the past few years.
"It's something we're very excited about and very optimistic about," Guse said.
