CommercialNovartis signs a $100 million upfront gene therapy agreement...

Novartis signs a $100 million upfront gene therapy agreement with Voyager

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Novartis announced an expansion of its collaborative efforts with Voyager Therapeutics, resulting in a noteworthy surge in VYGR stock, propelling it above its 200-day line for the first time in four months. This enhanced collaboration will focus on the joint exploration of gene therapies targeting Huntington’s disease and spinal muscular atrophy, both hereditary conditions impacting voluntary movements in patients.

As part of the agreement’s terms, Voyager is set to receive an upfront payment of $100 million, which includes $20 million in equity, and stands to gain up to $1.2 billion in milestone payments. Additionally, Voyager will be entitled to tiered royalties based on newly developed drug sales utilizing its technology. 

Expressing enthusiasm about the expanded collaboration, Voyager’s CEO, Alfred Sandrock, highlighted Novartis’ global leadership in gene therapy and emphasized that the deal extends Voyager’s financial standing and operational runway until mid-2026.

A distinctive feature of Voyager’s technology lies in its capability to deliver drugs to the brain, utilizing capsids—protein shells—of an adeno-associated virus. This virus, rendered harmless, serves as a carrier for gene therapies. Voyager’s capsids possess the unique ability to traverse the blood-brain barrier, a significant advancement in drug delivery to the central nervous system.

Prior to this expansion, Novartis had opted to license Voyager’s capsids for two undisclosed neurological conditions. The new agreement provides Novartis with exclusive rights to Voyager’s technology for spinal muscular atrophy, assuming complete responsibility for the development and commercialization of the gene therapy specifically tailored for this disorder. Furthermore, the two companies will work together to progress Voyager’s gene therapy for Huntington’s disease.

Previously, Novartis had chosen to obtain the licensing rights for novel capsids—gene therapy delivery vehicles made possible by Voyager’s drug discovery platform. There is hope that these capsids may be used to treat two unidentified neurological disorders.

As part of a unique endeavor, Voyager is actively working on developing an experimental gene therapy to treat amyotrophic lateral sclerosis (ALS), a neurological condition. The business is also developing an antibody that will be used to treat Alzheimer’s disease.

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