UPDATE: Axovant shares soar 51% premarket on $842.5 mln licensing pact for Parkinson’s treatment
Shares of Axovant Sciences Ltd. soared more than 50% in premarket trade Wednesday, after Oxford BioMedica plc said it has entered an $842.5 million licensing agreement for OXB-102, a gene therapy treatment for Parkinson’s disease. Under the terms of the deal, Oxford BioMedica will receive a $30 million upfront payment, and is eligible for $55 million upon reaching certain milestones. It will receive $757.5 million on reaching regulatory and sales milestones and 7% to 10% tiered royalties on net sales of AXO-Lenti-PD. Axovant will fund all clinical development costs and expects to start a Phase 1/11 dose escalation study of AXO-Lenti-PD in patients with advanced Parkinson’s by year-end. The companies will host a conference call with investors at 9.30 a.m. Eastern. Axovant shares have fallen 68.8% in 2018 so far, while the S&P 500 has gained 2.8%. Oxford BioMedica shares were up 18% in London.