What happened
Shares of gene-editing pioneer Editas Medicine (NASDAQ:EDIT) rose over 17% today before settling near gains of 5% in the last hour of trading, after the company announced a strategic research-and-development collaboration with Allergan (NYSE:AGN). The pair will team up to advance and develop Editas' lead drug candidate, taking aim at a rare group of eye diseases collectively called Leber Congenital Amaurosis, or LCA. The rare inherited disease is detected at (or within months after) birth and can cause severe loss of vision or blindness.
Allergan, already a leader in treating and developing novel treatments for eye diseases, will also have exclusive access to license up to five of the gene-editing platform's ocular programs. Editas Medicine will receive $90 million up front, plus potential milestones and royalty payments. Of course, it's worth pointing out that even the lead program has yet to enter clinical trials.
Image source: Getty Images.
The partnership announcement specifically mentioned LCA10, which is one of 18 recognized types of LCA. Each type of the disease affects a different single gene, an important consideration for early gene-editing therapeutic candidates. That's because it will be easier to treat diseases with simpler genetic mutations affecting one gene (such as Friedreich's ataxia, sickle-cell anemia, and LCA) than it will be to treat diseases with more complex genetic influences (such as heart disease).
More specifically, there are good reasons for the company to initially focus on diseases affecting vision. CRISPR, the gene-editing technology used by Editas Medicine, has been shown in the past 18 months to restore sight in blind lab animals. Those external studies did not achieve very high efficiency rates and focused on diseases other than LCA, but there are encouraging similarities.
In the short term, given the early-stage nature of the technology and the company's pipeline, investors should focus more on the financial aspects of the deal. The $90 million up-front payment will provide a nice boost to the balance sheet, which showed $185 million in cash at the end of 2016. Plus, investors could expect additional up-front payments should Allergan license programs aside from LCA10.
It's also important to note that Allergan will be responsible for all expenses related to the development and commercialization of each program licensed, unless Editas Medicine exercises its option to co-develop and co-market up to two of the programs licensed by its new partner. That will allow the gene-editing pioneer to avoid significant clinical, regulatory, and marketing expenses while developing and commercializing its platform.
This may not be a blockbuster deal for investors, but there could be more deals on the way, now that the company's technology platform is no longer operating under the fog of uncertainty caused by a recently settled legal dispute. Either way, Allergan is a deep-pocketed and experienced partner that can shield Editas Medicine from development risks as the latter prepares to bring a CRISPR therapeutic into the clinic for the first time.
Maxx Chatsko has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
See original here:
Here's Why Editas Medicine Gained as Much as 17.2% Today - Motley Fool
- Gene Therapy for Genetic Disease: The Long and Winding Road [Last Updated On: August 17th, 2024] [Originally Added On: October 10th, 2011]
- Gene Doping: Super Athletes in 2008 Beijing Olympics - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 14th, 2011]
- The 3 Rs of DNA: Molecules to Medicine - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 15th, 2011]
- BIT 3.1 Entrez Gene - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 15th, 2011]
- Professor Ian Everall - Gene expression in schizophrenia - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 16th, 2011]
- Gene Therapy Promising Treatment (Part 2 of 4) - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 16th, 2011]
- Cancer Research @ NC State's Centennial Biomedical Campus - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 16th, 2011]
- Gene Therapy Promising Treatment (Part 1 of 1) - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 19th, 2011]
- HiTech_U3L3_Biotech in Medicine - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 19th, 2011]
- Sri Sathya Sai Medical Camps Worldwide - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 20th, 2011]
- Dr. Joseph M. DeSimone: 2008 Winner, $500000 Lemelson-MIT Prize - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 21st, 2011]
- Non-Hodgkin's Lymphoma Cancer Survivor Testimony - (Sanoviv Medical Institute) - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 22nd, 2011]
- Vaccines: Medicine for the Healthy - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 24th, 2011]
- For Your Health - Health Care Informatics - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 24th, 2011]
- A Century of Stem Cells - Johns Hopkins Medicine - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 24th, 2011]
- Functional Repair of Human Donor Lung by IL-10 Gene Therapy (EX VIVO Lung) - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 25th, 2011]
- Science Talk: Vaccine Made With Synthetic Gene Protects Against Deadly Pneumonia - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 25th, 2011]
- Health Matters: Family Medicine - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 26th, 2011]
- Dr. Jeffrey Myers Explains Genetic Variations in Head and Neck Cancer - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- The Emerging Network of Data for Understanding the Interactions of Genes and Drugs - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Burzynski_ Cancer Is Serious Business Part 4/8. wmv - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Pt2: Do you understand the new genetics? Maybe you don't have that gene! - Andrew Shelling - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Alien Genetic Takeover of Humanity! - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Burzynski | 2-DVD Set Extended Edition Montage Preview of New Material | Cancer Is Serious Business - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Genes, Genomes and the Future of Medicine - Richard Lifton, MD, Ph.D. - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Burzynski The Movie ~ Cancer Is Serious Business ~ High Quality - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Designing Life for Mars Colonization (Brainstorm Ep20) - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- Dedication Event: Santa Monica UCLA Medical Center [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- DR. Burzynski The Movie - Cancer Is Serious Business (PT.1) - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 27th, 2011]
- burzy - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Alien Genetic Takeover: The End of Humanity - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Burzynski_ Cancer Is Serious Business Part 1/8 .wmv - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Mike Schmidt - ECMO Patient - Penn State Hershey Medical Center - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Disrupting the HIV Virus (Brainstorm Ep24) - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Diagnosis and Treatment of Hepatorenal Syndrome - Moving Targets? - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Big Bucks, Big Pharma: Marketing Disease and Pushing Drugs - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Roles of RNA in Gene Regulation - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Diatom PCR Colony Screen - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Kleanthis G. Xanthopoulos, Ph.D., CEO, Regulus, talking on the impact of microRNA medicines - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Burzynski_ Cancer Is Serious Business Part 2/8 .wmv - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 28th, 2011]
- Sickle Cell Anemia: Stem Cell Gene Therapy - A Patient's Perspective - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 29th, 2011]
- Gene-based lung cancer treatment video - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 29th, 2011]
- HIV Resistant Genes...Rhesus Negative, Excess PK [Last Updated On: August 17th, 2024] [Originally Added On: October 29th, 2011]
- Futures in Biotech 83: Bioinformatics: Essential Gene names Skewed in a Network of Blame - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 29th, 2011]
- Keeping Blood Young, Fighting Sickle Cells (Brainstorm Ep28 - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 31st, 2011]
- News@Northwestern - NUGENE - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 31st, 2011]
- UK Medical Student Mary Burchett's Research is Personal - Video [Last Updated On: August 17th, 2024] [Originally Added On: October 31st, 2011]
- Cannabis 4 Crohn's: 2 Years As Medical Marijuana Patient, Dr Mind Bender [Last Updated On: August 17th, 2024] [Originally Added On: November 8th, 2011]
- Medical Haptical Robot for the Eye - Eye-Rhas, - TU Eindhoven - Video [Last Updated On: August 17th, 2024] [Originally Added On: November 8th, 2011]
- The Ghost in Your Genes - Horizon - BBC - Video [Last Updated On: August 17th, 2024] [Originally Added On: November 9th, 2011]
- The Ghost in Your Genes - BBC Horizon - Video [Last Updated On: August 17th, 2024] [Originally Added On: November 13th, 2011]
- Burzynski: Cancer Is Serious Business (Trailer) - Video [Last Updated On: August 17th, 2024] [Originally Added On: November 16th, 2011]
- Genes, Ancestry, and Personalized Medicine with Dr. Michael Kane - Interview Part 1.mp4 - Video [Last Updated On: August 17th, 2024] [Originally Added On: November 25th, 2011]
- The Suicide Gene - Video [Last Updated On: August 17th, 2024] [Originally Added On: November 29th, 2011]
- Ard Louis on Dawkins and Selfish Genes - Video [Last Updated On: August 17th, 2024] [Originally Added On: November 30th, 2011]
- TEDxLex - Dr. Alicia L. Bertone - Gene Jockeying for a Win in Regenerative Medicine.mp4 - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 3rd, 2011]
- Introduction to Gene Network - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 7th, 2011]
- The demise of a dogma. The deaf somatic gene listens - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 7th, 2011]
- Future of health care, hospitals, medicine and wellbeing - by Dr Patrick Dixon - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 8th, 2011]
- Electro-Medicine : Biological Physics : Neurological Research Advancements - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 12th, 2011]
- Haemophilia gene therapy breakthrough - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 15th, 2011]
- Duke researchers: Gene discovery explains how fruit flies retreat from heat - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 16th, 2011]
- Focus on Nikolaus Rajewsky - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 18th, 2011]
- Deadly Monopolies Medical Ethicist Harriet Washington on How Firms are Taking Over Life Itself - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 23rd, 2011]
- Open fetal surgery: past, present and future - Video [Last Updated On: August 17th, 2024] [Originally Added On: December 23rd, 2011]
- The Human Genome and Individualized Medicine - David Valle, MD - Video [Last Updated On: August 17th, 2024] [Originally Added On: January 14th, 2012]
- Environmental Contributors to Autism Spectrum Disorders - Video [Last Updated On: August 17th, 2024] [Originally Added On: January 20th, 2012]
- When Cancer Runs in the Family - Video [Last Updated On: August 17th, 2024] [Originally Added On: January 20th, 2012]
- Genome Enabled Electronic Medical Record (GenE EMR) - William Knaus - Video [Last Updated On: August 17th, 2024] [Originally Added On: January 22nd, 2012]
- Nuvigil withdrawal - Video [Last Updated On: August 17th, 2024] [Originally Added On: January 23rd, 2012]
- Cancer Cure Documentary - Dr. Burzynski Antineoplaston Therapy - Video [Last Updated On: August 17th, 2024] [Originally Added On: January 26th, 2012]
- Next Generation Cancer Gene Sequencing for Clinically Actionable Mutations - Video [Last Updated On: August 17th, 2024] [Originally Added On: January 26th, 2012]
- Fibrocell Science, Inc. Announces Recognition for LAVIV™ (azficel-T) at The 2012 Cell & Gene Therapy Forum, Washington ... [Last Updated On: August 17th, 2024] [Originally Added On: January 31st, 2012]
- Gene Mutation Linked to Inappropriate Lipid Buildup in Liver [Last Updated On: August 17th, 2024] [Originally Added On: February 1st, 2012]
- 'Goldilocks' gene could determine best treatment for tuberculosis patients [Last Updated On: August 17th, 2024] [Originally Added On: February 3rd, 2012]
- James Wilson, MD, Ph.D., on Gene Therapy as a Disruptive Technology - Video [Last Updated On: August 17th, 2024] [Originally Added On: February 3rd, 2012]
- 'Goldilocks' gene used to find drug treatment that is 'just right' for TB patients [Last Updated On: August 17th, 2024] [Originally Added On: February 4th, 2012]
- Gene therapy, a totally Italian success - Video [Last Updated On: August 17th, 2024] [Originally Added On: February 4th, 2012]
- Electro-Medicine : Neurons function revealed - Video [Last Updated On: August 17th, 2024] [Originally Added On: February 4th, 2012]
- Gene mutation discovery sparks hope for effective endometriosis screening [Last Updated On: August 17th, 2024] [Originally Added On: February 7th, 2012]