MRKR - Marker stock rises after plans to sell cell manufacturing assets to CellReady for ~$19M

2023-05-01 09:09:13 ET

Marker Therapeutics ( NASDAQ: MRKR ) signed an agreement with CellReady, a newly formed Contract Development and Manufacturing Organization (CDMO) founded by John Wilson, Marker's co-founder and board member.

Under the non-dilutive agreement, CellReady will buy certain cell manufacturing assets from Marker for ~$19M in cash and reduce Marker's overhead by about $11M annually by employing Marker's personnel and assuming the leases for Marker's Houston-based manufacturing and research and development facilities.

The companies expect the transaction will close on June 26.

CellReady also agreed to enter a long-term contract to provide services for Marker, including research and development, manufacturing, and regulatory activity in support of clinical trials.

Marker said the the transaction allows it to focus solely on the clinical advancement of its unique form of T cell therapy.

CEO : In addition, Marker said that Juan Vera , formerly its COO and chief scientific officer, has assumed the role of CEO, effective May 1.

In connection with this transaction, Marker's board set up a special transactions committee of impartial directors to review the transaction, and other strategic alternatives, the company noted.

Marker has made certain representations and warranties on the transferred assets, the company added.

"The reality is that Marker has not yet met our investors’ expectations," said Wilson, who is also the founder and CEO of Wilson Wolf. "Meanwhile, CellReady will provide Marker with all resources required to advance its clinical program, including people, facilities, and cell manufacturing capabilities. I estimate the net benefit to Marker to be approximately $42 million through the end of 2025.

MRKR +21.23% to $1.02 premarket May 1

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