REGENXBIO Inc. (RGNX) Deal With Abbvie (ABBV) 'Validates Positive Outlook' - Analyst
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Earlier today, REGENXBIO Inc. (Nasdaq: RGNX) announced a partnership with AbbVie (NYSE: ABBV) to develop and commercialize RGX-314, a potential one-time gene therapy for the treatment of wet age-related macular degeneration (wet AMD), diabetic retinopathy (DR) and other chronic retinal diseases.
Under the collaboration, REGENXBIO will be responsible for completion of the ongoing trials of RGX-314. AbbVie and REGENXBIO will collaborate and share costs on additional trials of RGX-314, including the planned second pivotal trial evaluating subretinal delivery for the treatment of wet AMD and future trials. AbbVie will lead the clinical development and commercialization of RGX-314 globally. REGENXBIO shall participate in U.S. commercialization efforts as provided under a mutually agreed upon commercialization plan.
Commenting on the news, Raymond James analyst Dane Leone believes the “deal validates positive outlook heading into Retina Society.”
His report highlights key issues the Abbvie partnership addresses:
- Resolve investor concerns around capital efficiency: AbbVie will bear the majority of development cost starting January 2023, and AbbVie will take control of manufacturing outside of the U.S.
- AbbVie will lead the product development and commercialization globally
- AbbVie due diligence clearly supports our view for a positive clinical update during Retina Society
- Macro concern around AAV FDA AdCom should dissipate: the AbbVie deal provides validation that regulatory surprises on regulatory requirements for retinal disorders are less likely going forward
Raymond James maintains a “Strong Buy” rating on REGENXBIO.
Shares of RGNX are moving nearly 25% higher following the announcement.
Written by Vlad Schepkov | [email protected]
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