Why Is Eye Disease Related Gene Therapy Focused MeiraGTx Stock Soaring Today?

MeiraGTx Holdings plc (NASDAQ:MGTX) on Thursday announced an asset purchase agreement with Janssen Pharmaceuticals Inc, a Johnson & Johnson (NYSE:JNJ) company, for the remaining interests in botaretigene sparoparvovec (bota-vec, formerly AAV-RPGR) for X-linked retinitis pigmentosa (XLRP).

MeiraGTx will monetize potential future royalties and milestones related to bota-vec, with J&J acquiring the remaining rights for developing, manufacturing, and commercializing bota-vec.

MeiraGTx is to receive $130 million in upfront and near-term milestone payments, including $65 million at signing, an additional $50 million anticipated in the first quarter of 2024, with the remaining $15 million in milestone payments expected later in 2024.

The company will receive up to an additional $285 million in cash payments upon first commercial sales of bota-vec in the U.S. and EU and for manufacturing technology transfer.

J&J will be responsible for any royalty or milestone amounts payable on bota-vec to UCL Business plc (University College London).

MeiraGTx has also entered into a commercial supply agreement with J&J for bota-vec manufacturing.

In October, Sanofi SA (NASDAQ:SNY) made a $30 million investment in MeiraGTx. It purchased 4.0 million ordinary shares at $7.50 per share.

Sanofi also received a right of first negotiation for the use of MeiraGTx's Riboswitch gene regulation technology for certain Immunology and Inflammation (I&I) and Central Nervous System targets, as well as for GLP-1 and other gut peptides for metabolic disease and MeiraGTx's Phase 2 Xerostomia program.

The deal and the Sanofi transaction would increase the company's cash runway to mid-2026.

Price Action: MGTX shares are up 22.50% at $6.02 on the last check Thursday.