Rockville, Maryland-based American Gene Technologies International will spin off is Addimmune division as a publicly traded company through a special purpose acquisition company.
Addimmune is developing a gene and cell therapy that make gene modifications to T-cells that harden those cells against HIV infection and depletion, and that may allow those cells to target and kill HIV, the precursor to AIDS, instead of being killed by the virus.
The company recently completed a small Phase 1 clinical trial that showed active immune responses to HIV up to six months after dosing. Capital raised from an initial public offering would fund larger clinical studies. The SPAC spinoff could raise $500 million for Addimmune.
To facilitate the public offering, American Gene Technologies has reached an agreement with New York-based 10X Capital Venture Acquisition Corp III, a blank-check company, with the combined company being listed on the New York Stock Exchange and trade under the ticker symbol “HIV.” The public offering is expected to be completed in early 2024.
10X Capital has been a minority investor in American Gene Technologies since January 2021.
American Gene Technologies International chief executive Jeff Galvin will serve as CEO of Addimmune.
“We’re at the forefront of gene therapy for HIV, working to transform the fear of a lifelong disease into hope for a single-administration, one-and-done cure,” Galvin said. “We believe that people living with HIV may no longer require lifelong treatment and we imagine a day when this disease no longer causes suffering or claims lives anywhere in the world.”
There are an estimated 38 million people globally living with HIV including 1.2 million in the U.S. HIV treatments now exists that suppress the virus which must be taken regularly for life.
