Benzinga - by Vandana Singh, Benzinga Editor.
MeiraGTx Holdings plc (NASDAQ: MGTX) on Thursday announced an asset purchase agreement with Janssen Pharmaceuticals Inc, a Johnson & Johnson (NYSE: JNJ) company, for the remaining interests in botaretigene sparoparvovec (bota-vec, formerly AAV-RPGR) for X-linked retinitis pigmentosa (XLRP).
MeiraGTx will monetize potential future royalties and milestones related to bota-vec, with J&J acquiring the remaining rights for developing, manufacturing, and commercializing bota-vec.
MeiraGTx is to receive $130 million in upfront and near-term milestone payments, including $65 million at signing, an additional $50 million anticipated in the first quarter of 2024, with the remaining $15 million in milestone payments expected later in 2024.
The company will receive up to an additional $285 million in cash payments upon first commercial sales of bota-vec in the U.S. and EU and for manufacturing technology transfer.
J&J will be responsible for any royalty or milestone amounts payable on bota-vec to UCL Business plc (University College London).
MeiraGTx has also entered into a commercial supply agreement with J&J for bota-vec manufacturing.
In October, Sanofi SA (NASDAQ: SNY) made a $30 million investment in MeiraGTx. It purchased 4.0 million ordinary shares at $7.50 per share.
Sanofi also received a right of first negotiation for the use of MeiraGTx's Riboswitch gene regulation technology for certain Immunology and Inflammation (I&I) and Central Nervous System targets, as well as for GLP-1 and other gut peptides for metabolic disease and MeiraGTx's Phase 2 Xerostomia program.
The deal and the Sanofi transaction would increase the company's cash runway to mid-2026.
Price Action: MGTX shares are up 22.50% at $6.02 on the last check Thursday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.