Sarepta (SRPT) Stock Down Despite New $48M Gene Therapy Deal
Zacks Investment Research | Nov 14, 2019 08:57PM ET
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) announced a collaboration and license agreement with North Carolina-based biotech company, StrideBio, Inc., to develop vivo adeno-associated viral (AAV)-based therapies for up to eight central nervous system (CNS) and neuromuscular targets. StrideBio is an expert in AAV and capsids.
Per the deal, Sarepta gains an exclusive license to four targets for CNS disorders for an upfront payment of $48 million in cash and Sarepta stock. StrideBio will also be entitled to some milestone payments as well as royalties on potential sales. StrideBio will lead investigational new drug (IND) enabling research, development and manufacturing for the first four CNS targets. Sarepta will not take care of the candidates’ preclinical development.
Additionally, Sarepta will have an exclusive option to expand the deal to include four additional neuromuscular and CNS targets for an upfront payment of up to $42.5 million plus milestones/royalties. Meanwhile, StrideBio has an option to obtain co-development and co-commercial rights to one of the collaboration targets. Further, Sarepta has committed to invest in StrideBio’s next financing round.
The deal strengthens Sarepta’s position in gene therapies to treat rare diseases.
Shares of Sarepta have lost 10.8% against the Original post
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