(Alliance News) - Syncona Ltd on Monday it will expand its retinal gene therapy pipeline with the acquisition of a Florida-based biotechnology company.
The investor in healthcare companies said a newly established portfolio company will acquire all the shares of Applied Genetic Technologies Corp for USD23.5 million, or USD0.34 per share. Nasdaq-listed AGTC shares closed at USD0.24 on Friday in New York.
AGTC is a clinical-stage biotechnology company focused on developing and commercialising adeno-associated virus-based gene therapies, to treat rare and debilitating illnesses. It is initially focused on inherited retinal diseases.
The acquisition will include its lead candidate, AGTC-501, which is an AAV gene therapy for X-linked retinitis pigmentosa; a type of rare genetic ocular disease. Syncona said it will help to drive the treatment through late-stage clinical development, applying its expertise in retinal gene therapy.
"If the transaction is completed, AGTC will be Syncona's third company focused on retinal gene therapy, following Nightstar and Gyroscope, and will benefit from Syncona's significant expertise and strategic insight in the field," the firm explained.
There is the potential for a further payment of up to USD50.0 million for the acquisition, should certain milestones be achieved.
AGTC-501 has received orphan drug destination from the US Food & Drug Administration and the equivalent classification in the EU.
Shares in the London-based Syncona were 0.1% higher at 168.80 pence each in London on Monday morning.
"This transaction further demonstrates the strength of our strategic capital base to fund exciting opportunities such as AGTC, where we believe we can apply our model and bring to bear our expertise to drive strong risk-adjusted returns for Syncona shareholders and deliver significant impact for patients," said Syncona Investment Management Ltd Chief Investment Officer Chris Hollowood.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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