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Voyager (VYGR) Gains on Deal With Novartis for Gene Therapies
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Shares of Voyager Therapeutics, Inc. (VYGR - Free Report) surged 33.3% after announcing its license option agreement with pharma giant Novartis (NVS - Free Report) .
The gene therapy company is developing life-changing treatments and next-generation adeno-associated virus (AAV) capsids.
Capsids are a protein shell that encloses the genetic material of virus used in developing a gene therapy.
Under the terms of the agreement, Novartis has the right to evaluate novel capsids from Voyager’s TRACER platform and exercise options to license capsids for an exclusive use with specific targets in its development of AAV gene therapies. NVS also gets options to access capsids for two additional targets.
In exchange, Voyager will receive $54 million upfront and is entitled to receive up to $37.5 million as exercise fees for options for three initial CNS targets, which can be exercised by Novartis within 12 months of signing.
Novartis may also elect to evaluate capsids for up to two additional targets. Voyager will get $18 million upon selection of each target and a $12.5 million exercise fee for the selection of a capsid for each target. VYGR is also eligible to earn up to $1.5 billion of potential development, regulatory and commercial milestones for products utilizing its licensed capsids.
VYGR is also entitled to mid- to high-single-digit tiered royalties based on the net sales of NVSs products incorporating the licensed capsids.
Shares of Voyager have declined 6.2% in the past year compared with the industry’s decrease of 37.1%.
Image Source: Zacks Investment Research
The targets for which Novartis receives rights under the agreement are distinct from those in Voyager’s internal and partnered pipeline. The latter retains global rights to its TRACER discovery platform as well as all capsids arising from it for use with other targets, subject to VYGR’s obligations under its pact with another pharma giant Pfizer (PFE - Free Report) .
In October 2021, Voyager announced an agreement with Pfizer whereby the latter gets the rights to evaluate novel capsids selected for the central nervous system and cardiac tropisms from the TRACER platform of the former. PFE also obtains rights exercise options to license capsids for an exclusive use in developing AAV gene therapies, incorporating two undisclosed transgenes. Shares surged on this deal as well.
These collaboration deals bode well for Voyager as the same provides an influx of funds for further pipeline progress. VYGR has a rich early-stage/pre-clinical pipeline of new and second-generation programs on Huntington’s disease, monogenic amyotrophic lateral sclerosis (SOD1), spinal muscular atrophy and diseases linked to GBA1 mutations.
The consensus estimate for Vertex’s 2022 earnings has increased $1.20 over the past 60 days to $14.52. Shares of VRTX have gained 14.1% in the past year.
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Voyager (VYGR) Gains on Deal With Novartis for Gene Therapies
Shares of Voyager Therapeutics, Inc. (VYGR - Free Report) surged 33.3% after announcing its license option agreement with pharma giant Novartis (NVS - Free Report) .
The gene therapy company is developing life-changing treatments and next-generation adeno-associated virus (AAV) capsids.
Capsids are a protein shell that encloses the genetic material of virus used in developing a gene therapy.
Under the terms of the agreement, Novartis has the right to evaluate novel capsids from Voyager’s TRACER platform and exercise options to license capsids for an exclusive use with specific targets in its development of AAV gene therapies. NVS also gets options to access capsids for two additional targets.
In exchange, Voyager will receive $54 million upfront and is entitled to receive up to $37.5 million as exercise fees for options for three initial CNS targets, which can be exercised by Novartis within 12 months of signing.
Novartis may also elect to evaluate capsids for up to two additional targets. Voyager will get $18 million upon selection of each target and a $12.5 million exercise fee for the selection of a capsid for each target. VYGR is also eligible to earn up to $1.5 billion of potential development, regulatory and commercial milestones for products utilizing its licensed capsids.
VYGR is also entitled to mid- to high-single-digit tiered royalties based on the net sales of NVSs products incorporating the licensed capsids.
Shares of Voyager have declined 6.2% in the past year compared with the industry’s decrease of 37.1%.
Image Source: Zacks Investment Research
The targets for which Novartis receives rights under the agreement are distinct from those in Voyager’s internal and partnered pipeline. The latter retains global rights to its TRACER discovery platform as well as all capsids arising from it for use with other targets, subject to VYGR’s obligations under its pact with another pharma giant Pfizer (PFE - Free Report) .
In October 2021, Voyager announced an agreement with Pfizer whereby the latter gets the rights to evaluate novel capsids selected for the central nervous system and cardiac tropisms from the TRACER platform of the former. PFE also obtains rights exercise options to license capsids for an exclusive use in developing AAV gene therapies, incorporating two undisclosed transgenes. Shares surged on this deal as well.
These collaboration deals bode well for Voyager as the same provides an influx of funds for further pipeline progress. VYGR has a rich early-stage/pre-clinical pipeline of new and second-generation programs on Huntington’s disease, monogenic amyotrophic lateral sclerosis (SOD1), spinal muscular atrophy and diseases linked to GBA1 mutations.
Voyager currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Vertex Pharmaceuticals (VRTX - Free Report) , which currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Vertex’s 2022 earnings has increased $1.20 over the past 60 days to $14.52. Shares of VRTX have gained 14.1% in the past year.