Sprint Bioscience up 116% today

Today, Sprint Bioscience announced that they sold the pre-clicical Trex1 cancer program to Gilead Sciences, Inc. for USD 14 million up front and with potential clinical, regulatory, and commercial milestone payments totaling up to USD 400 million.

As part of our due diligence when entering into our investment in Sprint Bioscience back in May, we at Life Science Invest Fund (LSIF) did expect a deal this year, but it came as a surprise, that it is in the form of a sale rather than an outlicensing deal. We assume, this approach has led to a higher up front payment at the expense of lower royalties going forward, and we regard this as a very good business decision by the management.

With this deal, Sprint Bioscience is in a completely different and more stable financial situation, and we look forward to further comments from the company when releasing the Q3 numbers tomorrow.

We are very pleased with the share reaction today; an increase of 116% under a huge volume of 16% of the companys shares traded, and we would like to congratulate CEO Johan Emilsson and his team for this value creating deal. Well done !