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Small Eye-Focused Gene Therapy Company Applied Genetic Goes Private In $24M Deal

Published 24/10/2022, 12:40
© Reuters. Small Eye-Focused Gene Therapy Company Applied Genetic Goes Private In $24M Deal

  • The newly established portfolio company of Syncona Limited has agreed to acquire Applied Genetic Technologies Corp (NASDAQ: AGTC) for approximately $23.5 million ($0.34 per share) in cash.
  • AGTC is entitled to potential future aggregate cash payments of up to $50.0 million (up to $0.73 per share) under contingent value rights (CVRs).
  • The total consideration of up to $1.07, including up to $0.73 per CVR, represent a premium of up to approximately 344% over AGTC's closing stock price on October 21, 2022.
  • Also See: Applied Genetic's Vision Loss Gene Therapy Shows Encouraging Safety, Efficacy At Three Months.
  • "Our board and leadership team evaluated all alternative options to progress AGTC-501. Given the state of equity and other funding markets, we see significant challenges in funding ongoing operations beyond 2022. We believe this transaction will deliver the best value to our shareholders," said Scott Koenig, Chairman of AGTC.
  • Last year, the company's pediatric gene therapy trial ran into safety problems.
  • Three of the five pediatric patients who received the highest dose developed severe inflammation around one month after dosing. Investigators saw inflammation in both eye segments.
  • AGTC will be Syncona's third company focused on retinal gene therapy.
  • The transaction is expected to close in the fourth quarter of 2022.
  • Price Action: AGTC shares are up 59.52% at $0.40 during the premarket session on the last check Monday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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