The Biopharma Company announced that it has licensed to Axovant Sciences the exclusive global rights for BB-301 (now named AXO-AAV-OPMD) intended for the treatment of oculopharyngeal muscular dystrophy (OPMD) and it has also entered into a fully funded research collaboration for the development of five additional gene therapy products in neurological disorders. As per the agreement Benitec will receive an upfront cash payment of US$10 million and additional cash payments amounting to US$17.5 million upon completion of four specific near-term manufacturing, regulatory and clinical milestones. After working for few years with Axovant, it is expected that the Group will achieve all eight milestones and thus realize the maximum amount of US$187.5 million and Benitec will retain 30 per cent of the net profits on worldwide sales of AXO-AAV-OPMD. The Group has eight milestones achievable related to development, regulatory and commercial and the potential value of these four near-term milestones (included in the eight), is US$187.5 million.
This transaction will be transformative for the Company and will give an opportunity to drive broad-based, clinically meaningful patient benefit across several areas of clinical medicine with true unmet need. This partnership will significantly enhance the financial, intellectual, and clinical development resources that are available to facilitate its efforts to build Benitec into a diversified biopharmaceutical company. Moreover, Axovant and Benitec will collaborate (in addition to AXO-AAV-OPMD) on a total of five additional investigational gene therapy products for neurological disorders, with Axovant fully funding each of the research programs. Benitec’s securities were in a trading halt pending the announcement. After this announcement of Global Licensing Agreement, the stock price jumped up significantly on ASX that is by 93.1 per cent and was trading at $0.28 ( as on 9 July 2018; 03;40 PM AEST).
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