In a groundbreaking move towards advancing gene therapy candidates for genetic disorders, Voyager Therapeutics announced on Tuesday a lucrative licensing deal with Swiss-based pharmaceutical giant Novartis. As part of the agreement, Novartis is set to make an upfront payment of $100 million. The collaboration holds the potential for Voyager to receive a staggering sum of up to $1.2 billion, contingent upon the successful achievement of specified milestones.
This development has propelled Voyager’s shares to surge by more than 30% in premarket trading. Voyager Therapeutics Inc’s stock is currently trading at $11.04, marking a significant increase of $2.04 or 22.67% as of today, January 3rd, at 12:35 pm GMT-5.
Under the terms of the deal, Voyager Therapeutics will grant Novartis access to its cutting-edge RNA-based screening platform. This platform is instrumental in expediting the discovery of experimental gene therapies. Additionally, Voyager stands to benefit from tiered royalties tied to the global sales of products developed through the utilization of its screening platform.
The focal point of this strategic partnership is the joint effort to develop a pre-clinical gene therapy candidate targeting Huntington’s disease (HD). HD is a hereditary condition characterized by the gradual breakdown and degeneration of nerve cells in specific regions of the brain. Voyager will spearhead the pre-clinical development, while Novartis will assume responsibility for conducting all clinical studies and overseeing the commercialization of the HD candidate.
This collaboration extends beyond HD, as Novartis secures access to Voyager’s platform for the exploration and development of potential gene therapies aimed at treating spinal muscular atrophy. This group of rare genetic disorders impacts nerve cells, leading to progressive muscle wasting and weakness. The collaboration promises to combine Voyager’s expertise in gene therapy development with Novartis’ vast resources and global reach.
This is not the first instance of collaboration between the two companies. Novartis had previously exercised an option to license novel capsids or gene therapy delivery vehicles, derived from Voyager’s drug discovery platform. These delivery vehicles hold promise as potential treatments for two undisclosed neurological conditions, reflecting the ongoing commitment to innovative solutions for complex disorders.
In a parallel development, Voyager Therapeutics is actively engaged in the development of an investigational gene therapy designed to address amyotrophic lateral sclerosis (ALS), a devastating neurological disease. Furthermore, the company is exploring the potential of an antibody for the treatment of Alzheimer’s disease, further underscoring their commitment to pioneering solutions for challenging medical conditions.
The Voyager and Novartis deal marks a significant stride in the field of gene therapy, with the potential to transform the landscape of treatment for genetic disorders. The infusion of Novartis’ financial commitment and expertise, coupled with Voyager’s innovative platforms, positions this partnership as a formidable force in the pursuit of groundbreaking therapeutic solutions. As the companies embark on this collaborative journey, the medical community and investors alike eagerly await the unfolding developments in gene therapy research and its potential impact on patients’ lives.
