Biogen Inc. entered an agreement with Applied Genetic Technologies Corp. (AGTC) for $124 million in commercial rights and licenses to various gene-based therapies, a report from The Wall Street Journal stated.
This collaboration marks Biogen's entry into the field of opthalmology.
AGTC's shares increased from $19.75 to $21 in Nasdaq's morning market after the announcement. Biogen's shares barely moved at $406.08.
According to Reuters, aside from the $124 million paid upfront, an investment in AGTC's shares worth $30 million is included. The company would also be eligible for royalties and milestone payments of yearly net sales of any approved creations arising from the merge.
Olivier Danos, Ph.D., chief of cell and gene therapy, said in a statement, "AGTC is an exceptional partner to help us advance our gene therapy capabilities by targeting diseases of the eye."
The starting work will target isolated diseases of the retina which can lead to visual impairment, including one medication being tested on patients, and one still in pre-clinical stage.
Human trials are already conducted with treatments for X-linked Retinoschisis, a condition that fundamentally affects young males in their early years up to adolescence and can result in severe complications, such as retinal detachment or vitreous hemorrhage.
X-Linked Retinitis Pigmentosa, which commonly causes nyctalopia (night blindness) at the tender age of ten and elevates to legal blindness, is still in the pre-clinical phase.
According to Market Watch, Biogen is a company founded in 1978. It is one of the world's earliest independent biotechnology firm. Patients around the world have benefited from its frontlining multiple sclerosis and unprecedented hemophilia therapies.
Through the use of state-of-the-art science and medicine, it has discovered, advanced, and delivered vanguard therapies and treatments for neurodegenerative illnesses, autoimmune disorders and hematologic conditions to patients' across the world.
AGTC, on the other hand, is a clinical-phase biotechnology corporation that uses its trademarked gene therapy program to create products specifically for patients with severe eye illnesses.
AGTC's primary products focus on targeting achromatopsia, X-linked retinoschisis and X-linked retinitis pigmentosa which are gene related opthalmologic diseases, resulting from single gene mutations that remarkably affects eye functions.
Sadly, current medical treatments are inefficient. The company also makes use of its gene therapy prowess to expand into disease indicators with huge market possibilities such as wet AMD (age-related macular degeneration) and other eye and orphan indications.
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