Novartis expanded its gene therapy collaboration with Voyager Therapeutics on Tuesday. VYGR stock rocketed above its 200-day line for the first time in four months.
The two companies will work together to test gene therapies for Huntington's disease and spinal muscular atrophy. Both inherited disorders affect a patient's voluntary movements.
Under the deal's terms, Voyager will receive $100 million up front, including $20 million in equity, and up to $1.2 billion in milestone payments. Voyager is also eligible to receive tiered royalties on sales of new drugs that use its technology.
"We are thrilled to expand our existing relationship with Novartis, a global leader in the gene therapy field," Voyager Chief Executive Alfred Sandrock said in a statement. He noted the deal extends Voyager's balance sheet and runway into mid-2026.
On today's stock market, VYGR stock jumped 6.6% to 9, pulling back from a much steeper surge. Still, that pushed shares above their 200-day line, according to MarketSmith.com. Novartis stock inched a fraction ahead.
VYGR Stock: Bypassing The Blood-Brain Barrier
Voyager's technology focuses on delivering drugs to the brain. Gene therapies are generally delivered inside the protein shell — known as a capsid — of an adeno-associated virus. The latter is a virus that has been emptied of its harmful properties. Voyager makes capsids that can hop over the blood-brain barrier.
Novartis had already exercised its options to license Voyager's capsids in two undisclosed neurological diseases. Now, the company will have exclusive access to Voyager's tech for spinal muscular atrophy. It will take over all development and commercialization for the gene therapy in that disease. Further, the companies will work together on Voyager's gene therapy for Huntington's disease.
The news sent VYGR stock to its highest point since June. Still, shares have a middling Relative Strength Rating of 58, according to IBD Digital. This puts Voyager stock narrowly above the bottom half of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
