GRCL - Why Shares of Gracell Biotechnologies Are Rising Monday
2023-08-07 14:12:24 ET
Shares of Gracell Biotechnologies (NASDAQ: GRCL) were up by more than 16% as of 2 p.m. on Monday after the clinical-stage biotech company announced a private stock placement of $150 million dollars. The company is scheduled to report second-quarter earnings on Aug. 14. The stock is up more than 75% this year.
The Chinese company focuses on autologous and allogeneic cell therapies to treat cancer and autoimmune disorders. The healthcare company announced on Monday that a private group of investors had agreed to finance the company $100 million up front, plus an additional $50 million tied to the exercise of warrants.
This was good news for two reasons for investors. The financing extends the company's cash situation, allowing it to fund operations into the second half of 2026. Prior to the announcement, the company said it only had $186 million in cash as of the end of the first quarter on March 31. It also shows that investors see potential in the company's lead therapy, GC012F. In June, the company said that GC012F showed an 100% overall response rate in a long-term follow-up to treat patients with relapsed/refractory B-cell non-Hodgkin's lymphoma. The CAR-T therapy is a CD19 and B-cell maturation antigen.
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Why Shares of Gracell Biotechnologies Are Rising Monday