Avigen Sells AAV Gene Therapy Assets to Genzyme Corp

Avigen, a biopharmaceutical company, has reached an agreement to sell its AAV gene therapy assets to Genzyme Corp. for $12 million upfront, with additional milestone payments and royalty payments on developed products. The assets include all rights to an extensive patent estate and Avigen's Parkinson's disease clinical trial program. This sale marks a significant milestone in Avigen's strategic shift from gene therapy to small molecule therapeutics.

Key Takeaways:

Avigen will receive $12 million upfront from Genzyme, with additional milestone payments and royalty payments on developed products.
The assets being sold include all rights to an extensive patent estate and Avigen's Parkinson's disease clinical trial program, which is currently in phase I/II study at University of California, San Francisco (UCSF).
The sale allows Avigen to focus on small molecule therapeutics with a more established development process and leverage external contractors for development.
Avigen has already reduced operational expenses by over $2 million annually and aims to further reduce overhead expenses through subleasing unused parts of its facility.
Genzyme's gene therapy portfolio includes preclinical work on lysosomal storage disorders and atrial fibrillation, as well as ongoing clinical trials on locally delivered Ad2/HIF-1 alpha for peripheral arterial disease.
Avigen's Parkinson's disease program, including AV201, will be continued by Genzyme in a joint effort with UCSF.
The sale also involves continued collaboration with Katharine High on hemophilia gene therapy research, with existing vector and regulatory assistance provided for ongoing clinical development.

Statistics:

$12 million upfront payment from Genzyme to Avigen
Over $2 million in annual cost reductions for Avigen
Additional $5 million in savings through subleasing unused parts of the facility
Upcoming milestone payments and royalty payments on developed products
Phase I/II Parkinson's disease clinical trial ongoing at UCSF
Preclinical gene therapy research on lysosomal storage disorders and atrial fibrillation
Joint effort with Applied Genetic Technologies on gene therapy research

Sources:

Biotech Business Week editors from staff and other reports.