UniQure Soars After Deal With Bristol-Myers On Gene Therapy - Update

(RTTNews) - Shares of uniQure N.V. (QURE) surged 46 percent on Monday after announcing a collaboration with Bristol-Myers Squibb Co (BMY) for cardiovascular diseases-related gene therapy. The deal will see Bristol-Myers initially acquiring a 4.9 percent stake in uniQure and making near-term payments of $100 million.

The collaboration is to be effective during the second quarter of 2015.

The deal provides Bristol-Myers with exclusive access to uniQure's gene therapy platform for multiple targets in cardiovascular diseases.

Bristol-Myers will initially buy a 4.9 percent stake in uniQure for $33.84 per share, or at least $32 million in total. The $33.84 per share represents a premium of 48 percent to uniQure's closing on Thursday.

Bristol-Myers will acquire an additional 5 percent stake in uniQure before the end of this year at a 10 percent premium, and will be granted two warrants to acquire up to an additional 10 percent equity interest, at a premium, based on additional targets being introduced into the collaboration.

Bristol-Myers will make near-term payments of about $100 million, including an upfront payment of $50 million at the closing of the transaction, a $15 million payment for the selection of three collaboration targets, in addition to S100A1, to be made within three months of the closing and

The parties have also agreed to enter into a supply contract, under which uniQure will undertake manufacturing of all gene therapy products under the collaboration.

uniQure will be eligible to receive research and regulatory milestone payments, including up to $254 million for the lead S100A1 therapeutic and up to $217 million for each other gene therapy product potentially developed under the collaboration.

uniQure is also eligible to receive net sales based milestone payments and royalties on product sales.

Bristol-Myers will lead development and regulatory activities, and solely responsible for commercialization of all products from the collaboration.

UniQure's only approved drug is Glybera, a genetic treatment for a rare disease called familial lipoprotein lipase deficiency. The European Union approved the drug in 2012. The drug is not approved in the U.S.

BMY is trading at $63.31, up $0.08 or 0.12%, on a volume of 1.4 million shares on the NYSE.

QURE is trading at $33.47, up $10.61 or 46.41%, on a volume of 1.9 million shares on the Nasdaq.