Pharmaceutical giant Novartis (NVS) has expanded its collaboration with Voyager Therapeutics (VYGR), leading to a significant surge in VYGR stock, which surpassed its 200-day line for the first time in four months.
The extended partnership will focus on testing gene therapies for Huntington’s disease and spinal muscular atrophy, both genetic disorders impacting voluntary movements in patients.
As part of the agreement, Voyager is set to receive an upfront payment of $100 million, inclusive of $20 million in equity, and stands to gain up to $1.2 billion in milestone payments. Additionally, Voyager will be entitled to tiered royalties on sales of new drugs utilizing its technology.
Voyager’s CEO, Alfred Sandrock, expressed enthusiasm about broadening ties with Novartis, a global leader in the gene therapy field. He highlighted the financial benefits, noting that the deal extends Voyager’s financial stability and operational capacity until mid-2026.
On the stock market, VYGR shares experienced a notable 6.6% increase, reaching $9. Although the surge pulled back from its initial peak, it propelled the stock above its 200-day line, as reported by MarketSmith.com. Novartis stock, in comparison, showed a marginal gain.
Voyager’s technology focuses on delivering drugs to the brain, utilizing capsids—protein shells—of an adeno-associated virus, emptied of harmful properties. These capsids, developed by Voyager, have the unique ability to traverse the blood-brain barrier.
Novartis, having previously exercised options to license Voyager’s capsids for two undisclosed neurological diseases, will now gain exclusive access for spinal muscular atrophy. Novartis will assume full responsibility for development and commercialization of the gene therapy for this disease. The collaboration will also extend to joint efforts on Voyager’s gene therapy targeting Huntington’s disease.
The news propelled VYGR stock to its highest level since June, although the shares currently hold a Relative Strength Rating of 58, indicating a moderate performance compared to other stocks over the past 12 months, according to IBD Digital.
