MeiraGTx (MGTX) shares added ~18% in the premarket on Monday after the genetic medicines company announced a broad strategic collaboration with Eli Lilly (LLY) to develop and commercialize gene therapies for eye diseases.
As part of the agreement, the New York-based biotech will grant Lilly (LLY) exclusive global rights to its AAV-AIPL1 gene therapy program for developing drugs aimed at a hereditary eye condition.
The disease, Leber congenital amaurosis 4 (LCA4), owing to genetic deficiency of Aryl-hydrocarbon-interacting protein-like 1 (AIPL1), was identified by MeiraGTx (MGTX) as one of the most severe inherited retinopathies.
Under the deal, the Indiana-based pharma giant will also receive rights to some of MGTX’s other gene therapy technologies.
In exchange, the company will receive $75M upfront and more than $400M additionally, subject to the achievement of certain milestones. MeiraGTx (MGTX) will also be eligible for tiered royalties on potential sales from licensed products.