Biogen Obtains Worldwide Commercialization Rights For XLRS And XLRP Programs

(RTTNews) - Biogen (BIIB) and Applied Genetic Technologies Corp. (AGTC) announced a collaboration and license agreement to develop gene-based therapies for multiple ophthalmic diseases. The lead development programs in the collaboration include a clinical candidate for X-linked Retinoschisis (XLRS) and a pre-clinical candidate for the treatment of X-Linked Retinitis Pigmentosa (XLRP). The agreement includes options for early stage discovery programs in two ophthalmic diseases and one non-ophthalmic condition and a license agreement for manufacturing rights.

Under the agreement, Biogen will be granted a license to the XLRS and XLRP programs and the option to license discovery programs for three additional indications at the time of clinical candidate selection. Biogen will make an upfront payment in the amount of $124 million to AGTC, which includes a $30 million equity investment in AGTC at a price equal to $20.63 per share and certain prepaid research and development expenditures.

AGTC is also eligible to receive upfront and milestone payments exceeding $1 billion. This includes up to $472.5 million collectively for the two lead programs, which also will carry royalties in the high single digit to mid-teen percentages of annual net sales. Biogen will make payments up to $592.5 million across the discovery programs, along with royalties in the mid single digits to low teen percentages of annual net sales.