Voyager Therapeutics and Novartis Sign Deal for Neurological Disease Treatments

Shares of Voyager Therapeutics Inc. (VYGR) jumped Tuesday after the biotech firm agreed to a strategic collaboration and capsid licensing agreement with Novartis AG (NVS) to treat neurological illnesses.

The deal is aimed at producing advanced gene therapies for Huntington’s disease (HD) and spinal muscular atrophy (SMA). It calls for Voyager to provide Novartis a target-exclusive license to access its Tracer capsids and other intellectual property. Voyager’s Tracer uses an RNA-based screening platform to help deliver medicines to the brain. The two companies will also work together on a preclinical gene therapy candidate for HD.

Under the terms of the contract, Novartis will pay $100 million upfront, including buying $20 million worth of newly issued equity in Voyager. In addition, Voyager could receive up to $1.2 billion in preclinical, development, regulatory, and sales milestones, as well as tiered royalties on global net sales of products incorporating Tracer capsids.

Fiona Marshall, president of Biomedical Research at Novartis, said her company believes Tracer capsids “hold promise for enabling next-generation gene therapies for diseases of the central nervous system,” and working with Voyager aligns well with its current neuroscience and gene therapy research.

Novartis previously exercised options to use Tracer capsids for gene therapy research on two undisclosed neurological disease targets, the company said.

Voyager Therapeutics shares soared more than 25% Tuesday to roughly $10.50, their highest level since July. American depositary receipts (ADRs) of Novartis were also slightly up.