Why Is Gene Therapy Focused Voyager Therapeutics Stock Soaring Today?

Voyager Therapeutics Inc VYGR announced a strategic collaboration and capsid license agreement with Novartis Pharma AG, a subsidiary of Novartis AG NVS, to advance potential gene therapies for Huntington's disease (HD) and spinal muscular atrophy (SMA). 

Voyager will provide Novartis a target-exclusive license to access Voyager's TRACER capsids and other intellectual property for the respective diseases. 

Voyager and Novartis will collaborate to advance a preclinical gene therapy candidate for HD.

"We are thrilled to expand our existing relationship with Novartis, a global leader in the gene therapy field," said Alfred Sandrock, Chief Executive Officer of Voyager...In addition, the consideration Voyager will receive from this collaboration will strengthen our balance sheet and extend our runway into mid-2026."

Novartis previously exercised options to license novel capsids generated from Voyager's TRACER capsid discovery platform for use in gene therapy programs against two undisclosed neurological disease targets.

Novartis has agreed to pay Voyager $100 million of consideration up front, including a $20 million purchase of newly issued equity in Voyager. Voyager can receive up to $1.2 billion in preclinical, development, regulatory, and sales milestones and tiered royalties on global net sales of products incorporating Voyager's TRACER capsids. 

Novartis will obtain target-exclusive access to Voyager's TRACER capsids related to SMA for the duration of the agreement and will be responsible for all development and commercialization. 

Novartis will also receive worldwide rights to Voyager's AAV gene therapy for HD, leveraging Voyager's TRACER capsids and proprietary payloads. Voyager will be responsible for preclinical advancement, and Novartis will be responsible for all clinical development and commercialization for the HD program.

Price Action: VYGR shares are up 36% at $11.48 on the last check Tuesday.