Atara Biotherapeutics, Inc. (Nasdaq: ATRA) has announced the pricing of a $16 million offering aimed at advancing its lead candidate tab-cel toward regulatory approval. The T-cell immunotherapy company, based in Thousand Oaks, California, will issue 834,237 shares of common stock at $6.61 per share and pre-funded warrants to purchase 1,587,108 additional shares at $6.6099 per warrant.
The underwritten registered direct offering is being made to a select group of existing institutional investors, including entities affiliated with Adiumentum Capital Management, EcoR1 Capital, Panacea Venture, and Redmile Group. TD Cowen is serving as the sole bookrunner for the transaction, which is expected to close on or about May 16, 2025, subject to customary closing conditions.
Funding to Support Tab-cel BLA Approval
Atara has earmarked the net proceeds primarily to fund ongoing activities required to achieve Biologics License Application (BLA) approval for tab-cel, with remaining funds allocated for working capital and general corporate purposes. Tab-cel represents a significant component of Atara's pipeline, leveraging the company's novel allogeneic Epstein-Barr virus (EBV) T-cell platform.
The company's approach focuses on developing transformative therapies for patients with cancer and autoimmune diseases through its proprietary T-cell immunotherapy platform. Tab-cel (tabelecleucel) is being developed as an off-the-shelf, allogeneic T-cell immunotherapy for patients with EBV-associated diseases.
Offering Structure and Terms
The pre-funded warrants included in the offering will have an exercise price of $0.0001 per share and will be immediately exercisable upon issuance. This structure provides investors with immediate equity exposure while deferring the actual issuance of common stock.
The securities are being offered pursuant to a shelf registration statement on Form S-3 (No. 333-275256) that was filed with the U.S. Securities and Exchange Commission on November 1, 2023, and declared effective on November 13, 2023. A prospectus supplement with additional offering details will be filed with the SEC.
Market Context and Company Position
This financing comes at a critical juncture for Atara as it works to advance its lead candidate toward commercialization. The company's focus on EBV-associated diseases addresses significant unmet medical needs in both oncology and autoimmune conditions.
Atara's allogeneic approach to T-cell therapy offers potential advantages over autologous approaches, including the ability to deliver treatment without the need to harvest cells from individual patients. This "off-the-shelf" model could potentially provide more consistent product quality and reduce manufacturing complexity.
Strategic Implications
The successful completion of this offering will strengthen Atara's financial position as it navigates the complex and capital-intensive process of bringing a novel cell therapy to market. The participation of existing institutional investors signals continued confidence in the company's technology platform and clinical development strategy.
For patients with EBV-associated diseases, the advancement of tab-cel toward BLA approval represents a potential new treatment option for conditions that currently have limited therapeutic alternatives. The company's progress will be closely watched by clinicians, patients, and industry observers as it moves toward potential commercialization.
