Why Taysha Gene Therapies (TSHA) Shares Are Trading Higher Premarket - Taysha Gene Therapies (NASDAQ:TSHA)

Japan-based Astellas Pharma Inc ALPMF ALPMY announced a strategic investment to support the advancement of Taysha Gene Therapies Inc's TSHA adeno-associated virus (AAV) gene therapy development programs for of Rett syndrome and Giant Axonal Neuropathy (GAN).
In March this year, Taysha slashed 35% of its workforce and narrowed its R&D focus to extend its cash runway to Q4 of 2023.
It also narrowed its focus to registration-directed gene therapy programs in GAN and Rett syndrome.
Under the terms of the agreement, Astellas will invest $50 million to acquire a 15% stake in Taysha and receive an exclusive option to license two of Taysha's clinical-stage programs: TSHA-102 for Rett syndrome and TSHA-120 for GAN.
In addition, Taysha has granted Astellas certain rights related to any potential change of control of Taysha.
To further strategically align Astellas and Taysha with its equity investment, Astellas will receive one Board observer seat on Taysha's Board of Directors.
In December 2019, Astellas bought another gene therapy player Audentes Therapeutics Inc for an equity value of approximately $3 billion.
Following the Audentes acquisition, researchers reported the deaths of three boys given Audentes' lead gene therapy for X-linked myotubular myopathy, causing testing to be suspended.
The trial later resumed but was halted after a fourth boy's death. The study remains on clinical hold as of August 1 this year.
Price Action: TSHA shares are up 39.70% at $2.11 during the premarket session on the last check Tuesday.

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Astellas Pharma Invests $50M To Support Taysha's Gene Therapy Programs

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