By Colin Kellaher

Shares of Xilio Therapeutics more than tripled in premarket trading Thursday after the clinical-stage biotechnology company unveiled a series of developments, including a licensing agreement with Gilead Sciences that involves an equity investment at a rich premium.

Xilio said Gilead is buying 6.86 million shares at $1.97 apiece, more than triple Wednesday's closing price of 64 cents.

In addition to the $13.5 million equity investment, Gilead is making a $30 million up-front cash payment to Xilio, which is eligible to receive up to $604 million in additional contingent payments under the licensing agreement, which covers its tumor-activated IL-12 program.

Xilio also said it was raising another $11.3 million in a private placement and refocusing its portfolio, resulting in the elimination of 15 jobs, or 21% of its staff.

The Waltham, Mass., which had a market capitalization of about $18.2 million at the close of trading Wednesday, said it expects the moves to extend its cash runway into the second quarter of 2025.

Xilio shares were recently changing hands at $1.95 in premarket trading.

Write to Colin Kellaher at

(END) Dow Jones Newswires

03-28-24 0935ET