Voyager Therapeutics Shares Jump On Novartis Option Agreement For Gene Therapy Programs

Novartis AG NVS has entered a license option agreement with Voyager Therapeutics Inc VYGR for three capsids to use in potential gene therapies for neurological diseases, with an option to access capsids for two other targets.

• Data suggest that AAV capsids emerging from Voyager's TRACER platform (Tropism Redirection of AAV by Cell type-specific Expression of RNA) may show broad and improved distribution to neurons in the cortex and deeper brain regions.
• Voyager will receive $54 million upfront and is entitled to receive up to $37.5 million in exercise fees for options for three initial CNS targets. 
• In addition, Novartis may elect to evaluate capsids for up to two additional targets, for $18 million of each target and a $12.5 million exercise fee for selecting a capsid for each target. 
• Voyager is also eligible to earn up to $1.5 billion in potential milestone payments for products utilizing Voyager licensed capsids and mid-to high-single-digit tiered sales-based royalties.
• The targets for which Novartis receives rights under the agreement are distinct from those in Voyager's internal and partnered pipeline, and Voyager retains global rights to its TRACER discovery platform.
• Price Action: VYGR shares are up 15% at $4.52, while NVS stock is down 5.20% at $79.20 during the premarket session on the last check Tuesday.