The gene-based therapies developed by Applied Genetic Technologies Corp will be owned by Biogen Inc soon. The corporation is planning to enter in the domain of eye disease treatments. Biogen is expected to pay $124 million for commercial rights and licensing of the technology. Sharp 17 percent increase was spotted in the shares of AGTC after the decision was made public. Biogen shares were less enthusiastic.
The deal won’t be concluded entirely in the cash. The equity investment worth $30 million would be awarded to AGTC at price of $20.63 per share. The Biogen also has one more advantage of advance licensing of three research programs for different conditions. More than $1 billion would be given to AGTC through milestone payments. Two flagship research programs will receive $472.5 million along with discovery program of high potential.
The company is working hard to cure X-linked Retinoschisis. AGTC is developing preclinical treatment for X-Linked Retinitis Pigmentosa, common reason of blindness in men. The company will be able to cure rare eye disorders now due to fresh funding and Support, said Sue Washer, Chief Executive Officer of AGTC. The gene therapy is completely new domain in the medical field and when many pharma giants are just starting to exploring the field, the AGTC researchers have managed to develop expertise. The scientists try to replace faulty genes by planting healthy DNA.
The Massachusetts-based pharmacy giant is hunting new product to boost dropping sales. Previously Tecfidera, a multiple sclerosis therapy received massive response but now the sales growth is slowing down.