Selecta Biosciences Inc. (NASDAQ: SELB) and Sarepta Therapeutics Inc. (NASDAQ: SRPT) have announced that they had entered into a research license and option agreement. Shares of both posted gains early Thursday.
Sarepta is granted the option to license the rights to develop and commercialize Selecta’s immune tolerance platform, ImmTOR, for use in Duchenne muscular dystrophy (DMD) and certain lim-girdle muscular dystrophies (LGMDs).
Ahead of exercising this option, Sarepta will conduct research and evaluate the utility of ImmTOR to minimize or prevent the formation of neutralizing antibodies to adeno-associated virus in connection with the administration of Sarepta’s DMD and LGMD gene therapy candidates.
Under the terms of the research license and option agreement, Sarepta will make an initial payment to Selecta, and Selecta is eligible to receive certain preclinical milestone fees. The amount of the payment was not mentioned in the release.
Also, if Sarepta exercises its options to enter any commercial license agreements, Selecta will be eligible for additional development, regulatory and commercial milestone payments, as well as tiered royalties on net product sales. These additional financial details were not disclosed.
Note that DMD is a rare, degenerative neuromuscular disorder causing severe progressive muscle loss and premature death. LGMDs are a group of over 30 distinct diseases that cause weakness and wasting of the muscles around the hips and shoulders, eventually progressing to the arms and legs.
Selecta Biosciences stock traded up about 16% to $2.91 Thursday morning, in a 52-week range of $1.28 to $4.83. The consensus price target is $8.43.
Sarepta Therapeutics stock was up 2%, at $167.28 in a 52-week range of $72.05 to $167.43. The consensus price target of $193.29.
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