Vertex, Moderna Collaborate To Develop MRNA Therapeutics For Cystic Fibrosis

(RTTNews) - Vertex Pharmaceuticals Inc. (VRTX) and Moderna Therapeutics announced a research collaboration and licensing agreement aimed at the discovery and development of messenger Ribonucleic Acid Therapeutics for the treatment of cystic fibrosis. Vertex will pay Moderna $20 million in cash as part of its upfront commitment to the collaboration. Vertex will also make a $20 million investment in Moderna in the form of a convertible note that will convert to equity. The investment will provide Vertex with an ownership stake in Moderna.

Vertex will lead all preclinical, development and commercialization activities associated with the advancement of mRNA Therapeutics that result from the collaboration and will fund all expenses related to the collaboration. Vertex will pay Moderna future development and regulatory milestones of up to $275 million, including $220 million in approval and reimbursement milestones, as well as tiered royalty payments on future sales.