Vertex to acquire Exonics Therapeutics
ertex Pharmaceuticals will perform a potentially $2 billion increase of its exposure in gene editing via a set of offers meant to allow the company to create innovative therapies for Duchenne Muscular Dystrophy (DMD) and Myotonic Dystrophy Type 1 (DM1).
Vertex has a proven track record of developing important therapies for serious diseases and we are excited to combine our efforts to potentially develop a safe and efficacious one-time treatment for severe neuromuscular diseases
Vertex revealed plans to acquire Exonics Therapeutics for roughly $1 billion, in addition, to invest an added up-to $1.175 billion to increase a 3 1/2-year-old, potentially $2.5 billion-plus partnership with CRISPR Therapeutics that has led to the first clinical trial of a gene-editing therapy candidate funded by U.S. business.
“These transactions are highly aligned with our strategy of investing in scientific innovation to create transformative medicines for people with serious diseases,” Vertex chairman, president and Chief Executive Officer (CEO) Jeffrey Leiden, MD, Ph.D., stated in a declaration.
Based in Watertown, MA, Exonics utilizes its SingleCut CRISPR gene editing technology to create therapies by fixing mutations that trigger DMD as well as other hereditary neuromuscular diseases with substantial unmet need.
Privately-held Exonics was launched in February 2017 to advance the study of its co-founder and Chief Science Advisor (CSA) Eric N. Olson, Ph.D., and his research laboratory at the University of Texas Southwestern Medical Center (UTSW), where the company licenses the technology.
Olson – that is also a professor and chair of the department of molecular biology at UTSW – released a research study in Science in October 2018 revealing a 50% rise of dystrophin in skeletal muscular tissue and 90% boost in the hearts of the canine version. In several small and large animal DMD preclinical versions, Exonics has utilized SingleCut CRISPR to genetically fix and restore dystrophin in kids with DMD.
Olson will proceed as Exonics’ CSA and supply oversight and guidance on the study and development of transformative gene editing treatments, Vertex stated.
Exonics will become a wholly-owned subsidiary of Vertex
“Vertex has a proven track record of developing important therapies for serious diseases and we are excited to combine our efforts to potentially develop a safe and efficacious one-time treatment for severe neuromuscular diseases,” Olson mentioned.
Olson was mentioning Vertex’s marketed therapies for cystic fibrosis (CF), which include Kalydeco (ivacaftor), Orkambi (ivacaftor as well as lumacaftor), and Symdeko (tezacaftor/ivacaftor as well as ivacaftor). The three drugs last year produced a joined $3.038 billion in product revenues, up 40% from 2017, led by Orkambi with $1.262 billion, followed by Kalydeco with $1.008 billion.
Vertex’ successful advancement of CF treatments as well as profits growth has sustained conjecture regarding the company someday finding a buyer. Vertex was amongst 10 takeover targets highlighted in a GEN A-List released September 10, 2018.
Vertex has accepted to obtain all outstanding shares of Exonics, which will become a different wholly-owned subsidiary of Vertex. Exonics equity owners will be eligible to receive about $1 billion, consisting of $245 million in advance and potential upfront and future payments linked mostly to accomplishing advancement and regulatory milestones for the DMD and also DM1 programs.
The purchase undergoes specific issues, consisting of the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act as well as other traditional issues. The companies stated they expected the offer will close in the 3rd quarter of this year.
Vertex to utilize CRISPR Therapeutics’ gene-editing technology
“The Duchenne community needs novel approaches to treat and cure this devastating disease and Exonics’ technology has the potential to dramatically improve the lives of Duchenne patients,” mentioned Debra Miller, Chief Executive Officer (CEO) as well as founder of CureDuchenne, a co-founder with Olson of Exonics that gave first seed funding for the company.
CureDuchenne has leveraged over $1.5 billion from follow-on financial investments, finishing 5 successful investment exits since it was established in 2003. The nonprofit has used a venture philanthropy organization version of financing early-stage scientific research to advance encouraging Duchenne research projects.
CureDuchenne has provided early financing for 2 other companies of DMD therapies: Sarepta Therapeutics, which won the FDA’s questionable first authorization for a DMD treatment, Exondys 51 ® (eteplirsen) in 2016; and also Bamboo Therapeutics – which was acquired that year by Pfizer for $645 million.
Vertex also stated it will increase its collaboration with CRISPR Therapeutics to create gene therapy-based therapies, with the companies participating in a special licensing contract to discover and establish gene editing treatments for the treatment of DMD and DM1.
The firms launched their potentially $2.5 billion-plus partnership in October 2015, with Vertex consenting to utilize CRISPR Therapeutics’ gene-editing modern technology to uncover and create potential new therapies for CF as well as sickle cell disease.
In 2017, Vertex heralded the clinical success of three triple-combination programs of its CF therapies in Phase I and Phase II trials, possibly broadening the deep space of CF patients who could take advantage of therapy – stimulating a 25% rise in the company’s share price.
Vertex to pay CRISPR Therapeutics an overall $1 billion
In 2018, the companies started hiring patients for the first clinical trial of a gene-editing therapy candidate funded by U.S. companies. The Phase I trial (NCT03655678) is designed to examine the safety and efficacy of CRISPR-Cas9 modified CD34+ human hematopoietic stem as well as progenitor cells utilizing CRISPR Therapeutics’ CTX001, which remains in development for both β-thalassemia and sickle cell disease.
We are continuing to build a toolbox of small molecule and nucleic acid technologies and capabilities that will allow us to drive scientific innovation to produce transformative medicines for a broad portfolio of diseases
We continue to make significant advancements in enabling in vivo approaches for gene editing and are excited about the possibility of developing potentially curative therapies for DMD and DM1 together with Vertex,” stated CRISPR Therapeutics CEO Samarth Kulkarni, Ph.D.
Vertex consented to pay $175 million ahead of time for exclusive worldwide legal rights to CRISPR Therapeutics’ existing and future intellectual property including fundamental CRISPR/Cas9 technology, novel endonucleases, single and double cut guide RNAs, and AAV vectors for DMD and DM1 gene editing and products.
For the DMD program, Vertex accepted to look after all research, development, production, as well as commercialization tasks and all related costs. For the DM1 program, Vertex and CRISPR accepted to share research expenses for specified guide RNA research to be carried out by CRISPR, with Vertex in charge of all other research, manufacturing, commercialization, and also development expenses.
Vertex has also consented to pay CRISPR Therapeutics an overall $1 billion, including the upfront payment and settlements linked to accomplishing research development, regulatory, as well as business milestones for the DMD as well as DM1 programs. CRISPR Therapeutics is additionally eligible for tiered royalties from Vertex on future net sales on any products that might result from the expanded partnership.
Upon IND filing, CRISPR has the choice to bypass the DM1 milestones as well as royalties to co-develop and co-commercialize all DM1 products worldwide.
The expanded partnership is subject to conditions that consist of the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The business claimed they anticipate the deal will certainly enclose the third quarter of 2019.
“We are continuing to build a toolbox of small molecule and nucleic acid technologies and capabilities that will allow us to drive scientific innovation to produce transformative medicines for a broad portfolio of diseases,” Leiden stated.
Along with the Exonics purchase and CRISPR Therapeutics collaboration expansion, Vertex additionally stated it means to reinforce its gene editing-based drug development by:
- Developing a brand-new genetic therapy research site “in the Boston area” where study programs, as well as vector development and clinical production for hereditary therapies, including DMD and DM1 programs, will be performed.
- Assigning John T. Gray, Ph.D., as senior VP, genetic therapies effective June 17. He formerly served as CSO and senior VP at Audentes Therapeutics where he and his team focused on rAAV gene therapy for neuromuscular and liver disorders.