By Colin Kellaher

Poseida Therapeutics shares surged Monday after the clinical-stage biopharmaceutical company said it would receive a $50 million investment from Astellas that will help support its strategic and operational plans.

Shares of the San Diego company were recently changing hands at $2.56, up about 57%.

Poseida said Astellas is taking an 8.8% stake in the company by investing $25 million for more than 8.33 million shares at $3 apiece, an 84% premium to Friday's closing price of $1.63.

Astellas is also paying $25 million for a right of exclusive negotiation and first refusal to license P-MUC1C-ALLO1, Poseida's allogeneic CAR-T cell therapy in development for multiple solid tumor indications.

Posieda said the investment, along with cost-control measures it has implemented, extend its cash runway into early 2025.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 07, 2023 10:26 ET (14:26 GMT)

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