Voyager Enters into License for Next-Generation Capsid, Bringing Partnered Portfolio of TRACER-Enabled Gene Therapies to 14

Rhea-AI Summary

Voyager Therapeutics (Nasdaq: VYGR) has announced a new license agreement with Novartis AG (NYSE: NVS) for a novel capsid from Voyager's TRACER™ capsid discovery platform. The capsid will be used in a gene therapy program targeting an undisclosed rare neurologic disease. This agreement expands Voyager's partnered portfolio of TRACER-enabled gene therapies to 14 programs.

Key financial terms include:

• $15 million upfront payment to Voyager
• Up to $305 million in potential milestone payments
• Tiered mid- to high-single digit royalties on potential products

This marks the fifth gene therapy program in collaboration with Novartis, including Huntington's disease, spinal muscular atrophy, and three undisclosed indications.

Positive

• Expansion of partnered portfolio to 14 TRACER-enabled gene therapy programs
• $15 million upfront payment received
• Potential for up to $305 million in milestone payments
• Tiered mid- to high-single digit royalties on potential products
• Validation of TRACER capsid discovery platform by a global leader in gene therapy

Negative

• None.

Insights

Biotechnology Analyst

This licensing deal marks a significant milestone for Voyager Therapeutics, expanding their partnered portfolio to 14 TRACER-enabled gene therapies. The agreement with Novartis, a global pharmaceutical leader, validates Voyager's TRACER capsid discovery platform and strengthens their position in the neurogenetic medicine space.

The financial terms are noteworthy: $15 million upfront payment and potential for up to $305 million in milestone payments, plus tiered mid- to high-single digit royalties. This structure provides immediate cash infusion and substantial long-term revenue potential, important for a biotech company's growth and R&D efforts.

Investors should note that this deal expands Voyager's relationship with Novartis to five gene therapy programs, including high-profile targets like Huntington's disease and spinal muscular atrophy. This diversification reduces risk and enhances the company's potential for multiple successful outcomes in the gene therapy space.

Financial Analyst

The licensing agreement significantly bolsters Voyager's financial position. The $15 million upfront payment will immediately strengthen the company's balance sheet, while the potential for up to $305 million in milestone payments provides a substantial runway for future growth.

Importantly, the tiered royalty structure aligns Voyager's interests with the success of any resulting products, offering a sustainable revenue stream if therapies reach the market. This deal structure is common in biotech and allows Voyager to benefit from Novartis' development and commercialization expertise while retaining upside potential.

Investors should consider how this agreement might impact Voyager's cash burn rate and potentially extend their operational timeline. The expanded partnership with Novartis also enhances Voyager's attractiveness for future collaborations or investment opportunities.

Medical Research Analyst

Voyager's TRACER platform, which develops IV-delivered, blood-brain barrier-penetrant capsids, addresses a critical challenge in gene therapy for neurological disorders. The ability to deliver therapeutic genes to the central nervous system without invasive procedures is a significant advancement in the field.

The expansion of Voyager's partnership with Novartis to include rare neurologic diseases broadens the potential impact of their technology. While the specific target is undisclosed, rare neurological disorders often lack effective treatments, presenting substantial unmet medical needs and market opportunities.

Investors should note that success in gene therapy development could position Voyager as a key player in treating previously intractable neurological conditions. However, it's important to remember that gene therapy development is complex, with potential regulatory and clinical hurdles ahead.

Voyager to receive upfront consideration of $15 million and is eligible to receive up to $305 million in potential associated milestone payments and royalties

LEXINGTON, Mass., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Voyager Therapeutics, Inc. (Nasdaq: VYGR), a biotechnology company dedicated to advancing neurogenetic medicines, today announced that Novartis AG (NYSE: NVS) has agreed to license a novel capsid generated from Voyager’s TRACER™ capsid discovery platform for use in a gene therapy program against an undisclosed rare neurologic disease target. This capsid license is being granted pursuant to the agreement between Voyager and Novartis originally announced in March 2022.

“Novartis is a global leader in gene therapy, and we view their continued selection of our IV-delivered, blood-brain barrier-penetrant capsids as strong validation of our TRACER capsid discovery platform,” said Alfred W. Sandrock, Jr., M.D., Ph.D., Chief Executive Officer of Voyager. “We are proud of the continued success of the relationship between Voyager and Novartis, which now includes five gene therapy programs: Huntington’s disease, spinal muscular atrophy, and three undisclosed indications.”

In consideration for the current capsid license, Voyager will receive $15M upfront and is eligible to receive up to $305 million in associated potential development, regulatory, and commercial milestone payments, as well as tiered mid- to high-single digit royalties on a potential product incorporating the licensed capsid for this target.

About the TRACER™ Capsid Discovery Platform

Voyager’s TRACER™ (Tropism Redirection of AAV by Cell-type-specific Expression of RNA) capsid discovery platform is a broadly applicable, RNA-based screening platform that enables rapid discovery of novel AAV capsids to enable gene therapy. Voyager has leveraged TRACER to create multiple families of novel capsids that, following intravenous delivery in preclinical studies, harness the extensive vasculature of the central nervous system (CNS) to cross the blood-brain barrier and transduce a broad range of CNS regions and cell types. In cross-species preclinical studies (rodents and multiple non-human primate species), intravenous delivery of TRACER-generated capsids resulted in widespread payload expression across the CNS at relatively low doses, enabling selection of multiple development candidates in Voyager’s wholly owned and partnered gene therapy programs for neurologic diseases.

About Voyager Therapeutics

Voyager Therapeutics, Inc. (Nasdaq: VYGR) is a biotechnology company dedicated to leveraging the power of human genetics to modify the course of – and ultimately cure – neurological diseases. Our pipeline includes programs for Alzheimer’s disease, amyotrophic lateral sclerosis (ALS), Parkinson’s disease, and multiple other diseases of the central nervous system. Many of our programs are derived from our TRACER™ AAV capsid discovery platform, which we have used to generate novel capsids and identify associated receptors to potentially enable high brain penetration with genetic medicines following intravenous dosing. Some of our programs are wholly owned, and some are advancing with partners including Alexion, AstraZeneca Rare Disease; Novartis Pharma AG; Neurocrine Biosciences, Inc.; and Sangamo Therapeutics, Inc. For more information, visit www.voyagertherapeutics.com.

Voyager Therapeutics^® is a registered trademark, and TRACER™ is a trademark, of Voyager Therapeutics, Inc.

Forward-Looking Statements

This press release contains forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws. The use of words such as “will,” “potential,” or “continue,” and other similar expressions are intended to identify forward-looking statements.

For example, all statements Voyager makes regarding Voyager’s receipt of the fee for the Novartis license of the undisclosed rare neurologic disease target and Voyager’s eligibility to receive development, regulatory, and commercial milestone payments, and tiered royalties under the 2022 Novartis option and license agreement are forward looking.

All forward-looking statements are based on estimates and assumptions by Voyager’s management that, although Voyager believes such forward-looking statements to be reasonable, are inherently uncertain. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that Voyager expected. Such risks and uncertainties include, among others, the expectations and decisions of regulatory authorities; the timing, initiation, conduct and outcomes of Voyager’s preclinical and clinical studies; the availability of data from clinical trials; the availability or commercial potential of product candidates under collaborations; the willingness and ability of Voyager's collaboration partners to meet obligations under collaboration agreements with Voyager; the continued development of Voyager’s technology platforms, including Voyager’s TRACER platform and its antibody screening technology; Voyager’s scientific approach and program development progress, and the restricted supply of critical research components; the development by third parties of capsid identification platforms that may be competitive to Voyager’s TRACER capsid discovery platform; Voyager’s ability to create and protect intellectual property rights associated with the TRACER capsid discovery platform, the capsids identified by the platform, and development candidates for Voyager’s pipeline programs; the possibility or the timing of Voyager’s receipt of program reimbursement, development or commercialization milestones, option exercise, and other payments under Voyager’s existing licensing or collaboration agreements; the ability of Voyager to negotiate and complete licensing or collaboration agreements with other parties on terms acceptable to Voyager and the third parties; the success of programs controlled by third party collaboration partners in which Voyager retains a financial interest, and the success of Voyager’s product candidates; the ability to attract and retain talented directors, employees, and contractors; and the sufficiency of cash resources to fund its operations and pursue its corporate objectives.

These statements are also subject to a number of material risks and uncertainties that are described in Voyager’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. All information in the press release is as of the date of this press release, and any forward-looking statement speaks only as of the date on which it was made. Voyager undertakes no obligation to publicly update or revise this information or any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

Trista Morrison, NACD.DC, tmorrison@vygr.com
Investors: Adam Bero, Ph.D., abero@kendallir.com
Media: Brooke Shenkin, brooke@scientpr.com

FAQ

What is the latest licensing deal announced by Voyager Therapeutics (VYGR)?

Voyager Therapeutics has announced a new license agreement with Novartis AG for a novel capsid from its TRACER™ capsid discovery platform, to be used in a gene therapy program targeting an undisclosed rare neurologic disease.

How much upfront payment will Voyager (VYGR) receive from the new licensing deal?

Voyager Therapeutics will receive an upfront payment of $15 million from Novartis AG for the licensing of the novel capsid.

What is the total potential value of the licensing deal for Voyager (VYGR)?

The total potential value of the deal includes the $15 million upfront payment, up to $305 million in potential milestone payments, and tiered mid- to high-single digit royalties on potential products.

How many gene therapy programs does Voyager (VYGR) now have in collaboration with Novartis?

With this new agreement, Voyager Therapeutics now has five gene therapy programs in collaboration with Novartis, including Huntington's disease, spinal muscular atrophy, and three undisclosed indications.