Credit: Pgiam / Getty ImagesApplied Genetic Technologies Corporation (AGTC), a developer of adeno-associated microorganism (AAV)-based cistron therapies, is being acquired by Syncona Limited. AGTCs archetypal focus has been connected inherited retinal diseases (IRDs). Syncona volition wage $23.5 cardinal ($0.34 per share) successful currency astatine the closing of the transaction positive imaginable aboriginal aggregate currency payments of up to $50.0 cardinal (up to $0.73 per share). On closing, this volition beryllium the 3rd institution Syncova owns that is focused connected cistron therapy.
AGTC lone has capable currency to past until the extremity of 2022, and has already tried cutting costs and a $10M fundraising. Its pb product. Is GTC-501which is successful Phase II for X-linked retinitis pigmentosa (XLRP)—an incurable familial information that leads to blindness. They besides person a attraction successful improvement for different uncommon oculus illness called achromatopsia and an experimental process for addressing retinal degeneration called optogenetics.
“This transaction represents an charismatic upfront currency connection to shareholders astatine a premium of astir 42% to the existent stock price, with the imaginable to person aboriginal upside based connected the objective occurrence of XLRP and different pipeline assets done CVRs,” said Scott Koenig, Chairman of AGTC’s committee of directors.
He added that, “Our committee and enactment squad evaluated each alternate options to advancement AGTC-501. Given the authorities of equity and different backing markets, we spot important challenges successful backing ongoing operations beyond 2022. We judge that this transaction intelligibly volition present the champion worth to our shareholders. AGTC’s committee of directors has unanimously approved the connection and powerfully encourages shareholders to tender their shares.”
“Our squad has completed groundbreaking enactment for patients surviving with devastating retinal diseases,” said Sue Washer, President and Chief Executive Officer of AGTC. “This transaction allows continued advancement successful advancing an important therapy for XLRP patients portion besides maximizing contiguous and imaginable semipermanent worth to our shareholders.”
“We stock AGTC’s passionateness successful processing beingness changing treatments for patients with diseases with nary presently approved therapies,” said Chris Hollowood, Chief Investment Officer of Syncona Investment Management Limited. “Syncona has important expertise successful AAV cistron therapy, and successful particular, a beardown way grounds of gathering retinal cistron therapy businesses. We judge AGTC’s XLRP programme has the imaginable to beryllium a best-in-class merchandise that could alteration the lives of patients suffering with this devastating blinding condition.”
Syncona oversaw the merchantability of retinal companies Nightstar to Biogen for $877 cardinal successful 2019 and Gyroscope to Novartis past twelvemonth for $800 cardinal upfront. Syncona presently large shareholder successful 3 cistron therapy companies: liver-focused Freeline, kidney-focused Purespring, and neurological-focused Swan Bio.
The $0.34 per stock terms represents a premium of astir 42% and the imaginable for up to $1.07 per stock (inclusive of the imaginable CVR value) represents a premium of up to astir 344% implicit AGTC’s closing banal terms connected October 21, 2022. The transaction was unanimously approved by AGTC’s committee of directors and is expected to adjacent successful the 4th fourth of 2022.
AGTC is advancing aggregate pipeline candidates successful optogenetics, otology and CNS disorders. It has entered into strategical collaborations with companies including Bionic Sight, an innovator successful the emerging tract of optogenetics and retinal coding, and Otonomy, biopharmaceutical institution dedicated to the improvement of innovative therapeutics for neurotology.
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