By Chris Wack

Adaptimmune Therapeutics PLC shares were up 24% to $6.10 Tuesday after the company said it entered into a strategic collaboration and license agreement with Genentech, a member of Roche Holding AG, to develop and commercialize allogeneic cell therapies to treat multiple oncology indications.

Volume for the stock was 28 million shares at 12:55 p.m. ET, compared with a 65-day average volume of 832,000 shares. The stock hit its 52-week low of $3.37 on July 27.

The company said the collaboration has two components, development of allogeneic T-cell therapies for up to five shared cancer targets, and development of personalized allogeneic T-cell therapies.

For each component, Adaptimmune will be responsible for developing clinical candidates using its induced pluripotent stem cell derived allogeneic platform to produce T-cells. Genentech will be responsible for the input TCRs and subsequent clinical development and commercialization.

Adaptimmune will receive an upfront payment of $150 million and additional payments of $150 million over five years, unless the agreement is terminated earlier. Adaptimmune may also be eligible to receive research, development, regulatory and commercial milestones payments potentially exceeding $3 billion.

Adaptimmune will also receive tiered royalties on net sales in the mid-single to low-double digits.

Adaptimmune has the right to opt in to a 50/50 U.S. profit/cost share on "off-the-shelf" products. If Adaptimmune elects to opt in, it will be eligible to share 50% of profits and losses from U.S. sales on such products and is eligible to receive ex-U.S. regulatory and sales-based milestone payments, as well as royalties on ex-U.S. net sales.

SVB Leerink raised its price target for Adaptimmune to $6 from $5 a share, while maintaining its market perform recommendation.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

09-07-21 1317ET