Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) announced on September 24, 2026, that it has entered into a financing agreement with AvenCell Therapeutics, Inc., a clinical-stage cell therapy company, worth up to $47 million. The transaction is designed to accelerate AvenCell's pipeline of controllable allogeneic CAR-T therapies for cancer patients. The funding includes a royalty-based commitment and participation in a Series C financing.
Financing Structure and Royalty Arrangement
Under the agreement, Ligand has committed up to $41 million in exchange for a royalty on worldwide annual net sales of all current and future AvenCell pipeline assets, including AVC-201 and AVC-203. The royalty rate will range from a mid single-digit to a low double-digit percentage, depending on the total amount ultimately funded. The capital will be provided in four tranches, with the first payable at closing and the remaining three tied to specified clinical milestones and financing conditions.
In addition, Ligand has committed up to $6 million in a concomitant Series C financing, with separate details to be announced later. This combined structure links near-term capital deployment to AvenCell's clinical progress while providing Ligand with a long-term economic interest in the platform. The arrangement reflects a staged approach intended to manage risk as pipeline assets advance through development.
AvenCell's Technology and Clinical Pipeline
AvenCell was founded in 2021 by combining switchable CAR-T technology developed by GEMoaB GmbH, now AvenCell Europe GmbH, with Intellia's CRISPR/Cas9-based allogeneic engineering technology. The company's proprietary platform is designed to enable readily available off-the-shelf cell therapies with greater control over CAR-T activity and to overcome key limitations of existing CAR-T treatments. This approach has potential applications across hematologic malignancies and autoimmune diseases.
The lead program, AVC-201, is an anti-CD123 CAR-T currently in a Phase 1b expansion trial for relapsed or refractory acute myeloid leukemia. AvenCell is also advancing AVC-203, a Phase 1a program for B-cell malignancies. These clinical efforts address difficult-to-treat cancers where existing CAR-T options may face limitations in availability, safety, or controllability.
Executive Commentary
Todd Davis, CEO of Ligand, said AvenCell has built a differentiated cell therapy platform that combines CRISPR-engineered allogeneic CAR-T technology with a unique switchable CAR approach designed to provide greater control over CAR-T activity. He noted that the combination of these technologies and encouraging early clinical data with AVC-201 highlight the potential of the platform across a broad range of diseases. Davis added that Ligand looks forward to working closely with the AvenCell team as it advances next-generation cell therapies.
Andrew Schiermeier, President and CEO of AvenCell, said the company is excited to have the support and expertise of the Ligand team as it looks to advance pipeline programs through the clinic. He stated that the investment provides critical resources to support continued development of potentially important new treatment options. These treatments are aimed at patients impacted by difficult-to-treat cancers.
Strategic Significance
The financing gives Ligand exposure to a clinical-stage cell therapy portfolio while supporting AvenCell's development without immediate full acquisition. For AvenCell, the capital provides resources to reach key clinical milestones while retaining operational independence. The royalty-based structure also aligns the two companies around the long-term commercial success of AvenCell's pipeline.
The financing agreement between Ligand and AvenCell represents a targeted investment in next-generation allogeneic CAR-T technology. By linking funding to milestone achievements and securing a royalty on future sales, Ligand gains strategic exposure to a promising oncology pipeline. AvenCell obtains essential capital to advance its clinical programs, and Hogan Lovells Cadwalader served as legal advisor to Ligand.