The stock of Voyager Therapeutics, Inc. (NASDAQ: VYGR) is rising this morning; as of the most recent check during the current session, it was up 22.37% to $10.33. A big collaborative contract is the reason for the increasing Voyager stock price.
Voyager Therapeutics (VYGR) has inked a strategic collaboration and capsid license agreement with Novartis Pharma. The goal of the partnership with subsidiary of Novartis AG is to research possible gene treatments for spinal muscular atrophy (SMA) and Huntington’s disease (HD).
In order to promote an experimental gene therapy solution for HD, Voyager and Novartis will work together to grant Novartis a target-exclusive right to access Voyager’s TRACER capsids and other proprietary technology for the relevant illnesses. Voyager’s next-generation TRACER capsids and payloads, along with Novartis’s demonstrated expertise in gene therapy research and commercialization, could pave the way for the creation of significant new patient medicines.
Furthermore, Voyager’s runway will be extended until mid-2026 thanks to the consideration it will receive from this partnership, strengthening its financial sheet. In the past, Novartis has exercised its options to license unique capsids produced by Voyager’s TRACER capsid discovery technology for use in gene therapy initiatives directed against two unidentified targets of neurological diseases.
Novartis has committed to paying Voyager $100 million in consideration up front as per the terms of the deal, which also includes a $20 million acquisition of freshly issued Voyager shares. Preclinical, development, regulatory, and sales milestones of up to $1.2 billion are available to Voyager. In addition, tiered royalties on global net sales of products integrating Voyager’s TRACER capsids are also possible.
For the term of the agreement, Novartis will have target-exclusive access to Voyager’s TRACER capsids pertaining to SMA and will be in charge of all research and marketing. Additionally, Novartis will be granted global rights to utilize Voyager’s TRACER capsids and patented payloads in Voyager’s AAV gene therapy for HD. For the HD program, Novartis will handle all clinical development and commercialization, while Voyager will handle preclinical advancement.
