Syncona Acquires AGTC, Bolstering Gene Therapy Efforts for Inherited Retinal Diseases
In a significant development for the inherited retinal disease (IRD) community, Syncona, a leading healthcare company focused on life sciences, has announced its acquisition of Applied Genetic Technologies Corporation (AGTC). This acquisition, reported in October 2022, is poised to impact the landscape of gene therapy development for various IRDs, offering renewed hope for patients and families.
AGTC has been a clinical-stage biotechnology company primarily dedicated to developing adeno-associated virus (AAV)-based gene therapies for rare and debilitating diseases, with a particular focus on IRDs. The company's pipeline includes a lead asset, AGTC-501, a gene therapy for X-linked retinitis pigmentosa (XLRP), which was in a Phase 2/3 clinical trial known as Vista. XLRP is a severe form of IRD that predominantly affects males, causing progressive vision loss. Additionally, AGTC had Phase 1/2 programs for achromatopsia and an optogenetics program aimed at addressing retinal degeneration.
Syncona's acquisition of AGTC, through a tender offer, involved an upfront cash payment of $0.34 per share, totaling approximately $23.5 million. The deal also included potential future payments of up to $50.0 million (up to $0.73 per share) through contingent value rights (CVRs), which would materialize based on the clinical success of AGTC's lead XLRP program and other pipeline assets. This transaction was unanimously approved by AGTC's board of directors, who cited challenges in funding ongoing operations beyond 2022 in the prevailing capital markets as a reason for the acquisition.
For the IRD community, this acquisition means that the development of AGTC's gene therapy candidates, particularly for XLRP, is expected to continue under Syncona's stewardship. Syncona has a track record with eye gene therapies, having been a founding investor in other gene therapy developers focused on retinal conditions, such as Nightstar Therapeutics and Gyroscope Therapeutics, which were acquired in previous years. AGTC's CEO, Sue Washer, expressed that the transaction allows for continued progress in advancing an important therapy for XLRP patients.
This move highlights the ongoing commitment of specialized healthcare investors to advance gene therapies for inherited retinal diseases. While the immediate impact is the continuation of AGTC's programs, the long-term hope is that Syncona's experience and resources will help bring these potential treatments closer to patients who desperately need them. The IRD community will be watching closely for updates on the progress of these vital research efforts.