By Robb M. Stewart

 

Regenxbio Inc.'s shares jumped Monday after the biotechnology company struck an up to $1.75 billion deal that will see AbbVie Inc. take on clinical development and commercialization of its potential eye-disease gene therapy.

In morning trading, the stock was 23% higher at $40.62, narrowing the loss since the end of last year to 10%. AbbVie's shares were up 0.9% at $107.66.

AbbVie and Regenxbio said they will partner to develop RGX-314, which is being evaluated in patients with wet age-related macular degeneration in a trial using subretinal delivery, and in patients with wet age-related macular degeneration and diabetic retinopathy in two separate Phase II clinical trials using in-office suprachoroidal delivery.

Regenxbio will be responsible for completing the ongoing trials and the pair will collaborate and share costs on additional trials, while AbbVie will lead the clinical development and commercialization of RGX-314 globally, the companies said.

Abbvie will pay Regenxbio $370 million upfront, with the potential for Regenxbio to receive up to $1.38 billion in additional development, regulatory and commercial milestones. The companies said they will share equally in profit from sales of RGX-314 in the U.S., and AbbVie will pay Regenxbio tiered royalties on sales outside the U.S.

Regenxbio will lead the manufacturing of RGX-314 for clinical development and U.S. commercial supply, and AbbVie will lead manufacturing of RGX-314 for commercial supply outside the country, they said.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

September 13, 2021 11:10 ET (15:10 GMT)

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