Generation Bio stock surges ~20% on Moderna pact to develop non-viral genetic drugs
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Update: Story updated with Generation Bio premarket stock movement.
Moderna (NASDAQ:MRNA) is collaborating with Generation Bio (NASDAQ:GBIO) to develop non-viral genetic medicines.
The collaboration will use Generation Bio's stealth cell-targeted lipid nanoparticle (ctLNP) delivery system.
Under the agreement, Moderna (MRNA) has acquired an option to license Generation Bio's ctLNP and closed-ended DNA (ceDNA) technology for two immune cell programs and two liver programs, with an added option for a third immune cell or liver program.
Generation Bio will receive $40M cash upfront and $36M equity investment issued at a premium over recent share prices from Moderna, and potential future development, regulatory and commercial milestone payments, and royalties.
Moderna will fund all collaboration work, including a research pre-payment.
The companies added that Moderna will also have a right, subject to conditions, to buy additional common shares in connection with a future equity financing by Generation Bio.
"Through this collaboration, which builds on Generation Bio's non-viral genetic medicines platform, we have the potential to target immune cells with diverse nucleic acid cargos and the liver for gene replacement," said Rose Loughlin, Moderna's senior vice president for Research and Early Development.
In addition, the companies noted that they will use the partnership research to advance in vivo immune cell targeting as a new class of genetic medicines.
Generation Bio is eligible to receive certain exclusivity fees and potential development and regulatory milestones plus royalties on products that Moderna advances using the ctLNP technology developed under the partnership.
GBIO +21.13% to $4.70 premarket march 23
MRNA +1.23% to $150 premarket