Eli Lilly in pact with MeiraGTx to develop gene therapies for eye diseases

[Eli Lilly and Company World Headquarters. Lilly makes Medicines and Pharmaceuticals.]
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MeiraGTx (MGTX [https://seekingalpha.com/symbol/MGTX]) shares added ~18% in the premarket on Monday after the genetic medicines company announced a broad strategic collaboration with Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) to develop and commercialize gene therapies for eye diseases.

As part of the agreement, the New York-based biotech will grant Lilly (LLY [https://seekingalpha.com/symbol/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 [https://seekingalpha.com/symbol/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 [https://seekingalpha.com/symbol/MGTX]) will also be eligible for tiered royalties on potential sales from licensed products. [https://seekingalpha.com/pr/20300146-meiragtx-enters-into-strategic-collaboration-with-eli-lilly-and-company-to-develop-and]

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