Intrexon, Synthetic Biologics deal
Intrexon granted Synthetic Biologics exclusive, worldwide rights to develop and commercialize biotherapeutics using Intrexon’s ActoBiotics drug delivery technology to treat phenylketonuria (PKU). The agreement covers administration of a viral vector to alter the expression of phenylalanine hydroxylase and/or administration of genetically modified bacteria directed at effecting metabolic conversion of phenylalanine to treat PKU.
Intrexon will receive 937,500 Synthetic Biologics shares valued at $3 million based on Synthetic Biologics’ close of $3.20 on Aug. 7, the last trading day before the deal was announced. Intrexon is eligible to receive up to $27 million in milestones for each product developed, including $2 million in stock or cash upon the start of a Phase I trial. Additional milestone payments will be made following 30 days of the first commercial sale of a product in the U.S. or FDA approval of an NDA/BLA and following 30 days of the first commercial sale of a product in the EU or EMA approval of an MAA. Intrexon is eligible to receive tiered royalties of mid-single-digits on the first $100 million of net sales to mid-teen-digits on net sales exceeding $750 million for each product. ...