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Voyager Therapeutics (NASDAQ:VYGR), Inc., a biotechnology company focusing on severe neurological diseases, has entered into an amended agreement with Novartis (SIX:NOVN) Pharma AG, securing a one-time payment of $15 million. The announcement made today stems from an amendment to their 2022 Option and License Agreement.
The amendment, effective September 3, 2024, grants Novartis an additional exclusive license to a capsid developed by Voyager's TRACER platform. This capsid will be used with a specific gene target for developing and commercializing products. With the amendment, this gene target is now a licensed target under the terms of the original agreement.
In addition to the initial payment, Voyager stands to receive up to $130 million in development, regulatory, and commercialization milestone payments for the first product to hit these milestones. Furthermore, the agreement includes potential sales milestone payments of up to $175 million per product and tiered royalties on annual net sales, ranging from mid- to high-single-digit percentages.
The updated agreement also notes the expiration of Novartis' rights to exercise options for any initial and additional targets, except for those previously exercised, as of the amendment's effective date.
In other recent news, Voyager Therapeutics has been making notable strides in their research and development. The biotechnology firm, known for its focus on neurology, recently reported their second quarter financial results for 2024, which included an update on their central nervous system (CNS) focused pipeline and adeno-associated virus (AAV) capsid discovery platform, TRACER.
Voyager Therapeutics is currently evaluating VY7523, an anti-tau monoclonal antibody, in a Phase 1a trial with healthy volunteers. They expect to share the top-line safety and pharmacokinetic data from this trial in the first half of 2025. Additionally, the company plans to initiate a Phase 1b trial with VY7523 in patients with early Alzheimer's disease in 2025.
The company has also initiated Good Laboratory Practice (GLP) toxicology studies for VY9323, a wholly-owned gene therapy aiming to silence the SOD1 gene in patients with SOD1-driven amyotrophic lateral sclerosis (SOD1-ALS). This therapy is projected to be ready for filing by mid-2025.
Moreover, three additional gene therapy programs are on track for IND filings in 2025. These include partnered programs targeting GBA1 and Friedreich's ataxia (FA), as well as the wholly-owned SOD1-silencing gene therapy program for SOD1-ALS.
InvestingPro Insights
Voyager Therapeutics' recent agreement amendment with Novartis has provided a financial uplift for the company, as reflected in the real-time data from InvestingPro. The company, with a market capitalization of $338.11 million, holds more cash than debt on its balance sheet, an InvestingPro Tip that could indicate a stable financial position in the short term. Moreover, Voyager is trading at a low revenue valuation multiple, which might be attractive to investors seeking value stocks in the biotechnology sector.
Despite these potential positives, analysts expect a sales decline in the current year and do not anticipate the company to be profitable within the same timeframe. Additionally, the stock has been under pressure, trading near its 52-week low and experiencing significant price declines over various periods, with a one-month price total return of -22.21%. This could suggest that while the company's strategic moves are promising, market sentiment remains cautious.
For investors looking for a deeper analysis, there are additional InvestingPro Tips available, including insights into Voyager's earnings multiples and anticipated net income trends. Readers interested in a more comprehensive investment perspective can find further details on the InvestingPro platform.
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