Gold prices edge higher on raised Fed rate cut hopes
On Wednesday, H.C. Wainwright reaffirmed its Buy rating for Regenxbio Inc . (NASDAQ:RGNX).
This move followed the announcement of a significant partnership between the biotechnology company and Nippon Shinyaku for the development and commercialization of two of Regenxbio's gene therapy candidates.
Regenxbio disclosed on Tuesday that it had entered into a strategic collaboration with Nippon Shinyaku to advance RGX-121 and RGX-111 in the United States and Asia. RGX-121 is currently being developed as a potential treatment for Mucopolysaccharidosis II, also known as Hunter syndrome, while RGX-111 is aimed at treating Mucopolysaccharidosis I, known as Hurler syndrome.
According to the terms of the agreement, Regenxbio is set to receive an upfront payment of $100 million and could earn up to an additional $700 million in milestone payments. These payments include $40 million tied to development and regulatory milestones and $660 million related to sales milestones.
In addition to the milestone payments, Regenxbio is eligible to receive double-digit royalties on net sales in the U.S. and Asia. The company will also retain all proceeds from the sale of the Priority Review Voucher associated with RGX-121 if it receives FDA approval.
The rolling Biologics License Application (BLA) submission for RGX-121 is currently in progress, and the therapy has the potential to be the first gene therapy approved for MPS II by the end of 2025. RGX-111 has also shown encouraging results in a Phase 1/2 study.
The transaction between Regenxbio and Nippon Shinyaku is expected to close by the end of the first quarter of 2025. This partnership is anticipated to provide Regenxbio with non-dilutive capital to further develop its pipeline candidates.
H.C. Wainwright's analysts kept the $36.00 price target and cited the strategic partnership and the progress of Regenxbio's gene therapy candidates as key factors in maintaining the Buy rating and price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.