(Alliance News) - Novartis AG on Wednesday confirmed plans to purchase ocular gene therapy company Gyroscope Therapeutics Ltd in a deal that could see the Swiss pharmaceuticals firm pay up to USD1.5 billion.
Gyroscope Therapeutics is a clinical-stage gene therapy company based in London and specialising in treating eye diseases.
An upfront payment of USD800 million will be made as part of the deal, with potential additional milestone payments of up to USD700 million.
Basel, Switzerland-based Novartis highlighted that the acquisition complements its expertise in retinal diseases and gene therapy and builds its position in ophthalmology gene therapy and optogenetics.
Gyroscope's investigational gene therapy drug GT005 has the potential to be the "first therapy with sustained efficacy for a broad geographic atrophy patient population", Novartis added.
Geographic atrophy is an advanced form of dry age-related macular degeneration that leads to progressive and irreversible vision loss.
"With our own pioneering research in ocular gene therapies and our experience gained from bringing Luxturna to inherited retinal dystrophy patients outside of the US, Novartis has a well-established expertise in ocular gene therapies that will position us well to continue developing this promising one-time treatment" said Marie-France Tschudin, president of Novartis Pharmaceuticals.
"This acquisition is one more step forward in our commitment to delivering innovation in ophthalmology to treat and prevent blindness worldwide."
Syncona Ltd, a London-listed investor in healthcare companies, has a 54% stake in Gyroscope following a USD42 million investment in March, after co-founding the business in 2016.
In a bumper payday, Syncona will receive upfront cash proceeds of GBP334 million from the deal, representing a GBP180 million uplift to the current holding value. The investor said the sale has the potential to generate a further GBP255 million for Syncona, making for total proceeds of GBP589 million if received in full.
Novartis shares were 0.3% lower at CHF79.10 each in Zurich on Wednesday morning. Shares in Syncona were up 8.3% at 216.50 pence in London.
By Will Paige; willpaige@alliancenews.com
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