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Pharmaceutical industry

Avigen Sells AAV Gene Therapy Assets to Genzyme Corp.

Strategic Insights

— 2 min read

Avigen, a biopharmaceutical company, has reached a deal to sell its AAV gene therapy assets to Genzyme Corp. As part of the agreement, Genzyme will acquire Avigen's comprehensive AAV intellectual property (IP) portfolio, including its Parkinson's disease clinical trial program, which is currently in phase I/II study at the University of California, San Francisco (UCSF). This sale marks a significant milestone in Avigen's strategic shift from a gene therapy company to a pharmaceutical company focused on small molecule therapeutics for neurological disorders.

Key Takeaways:

  • Avigen will receive an upfront cash payment of $12 million from Genzyme, with additional milestone payments and royalty payments tied to the development of products under Avigen's AAV IP portfolio.
  • The sale of Avigen's AAV assets is part of the company's strategic shift, which involves reducing operational expenses and focusing on small molecule therapeutics with a more established development process.
  • Avigen has already achieved a cost reduction of over $2 million annually by eliminating the need to maintain an AAV manufacturing facility and associated expenses.
  • The company plans to sublease unused parts of its facility, resulting in additional savings of $5 million through the term of its lease.
  • The acquisition of Avigen's assets by Genzyme will allow the company to continue the clinical development of Avigen's Parkinson's disease program, which is in a phase I/II study at UCSF.
  • Genzyme's head of research, Rich Gregory, comments that Avigen's assets are an important strategic acquisition for the company, citing its impressive AAV IP estate and significant progress in advancing the clinical utility of gene therapy.
  • The sale of Avigen's assets is expected to provide Avigen with additional capital to fund its new strategic direction, focused on small molecule therapeutics and external contractors.
  • Avigen and Genzyme will continue to work with Katharine High, a world leader in hemophilia gene therapy research, to provide existing vector and regulatory assistance for the continued clinical development scheduled to be initiated in early 2006.
  • Alan Kinniburgh, CEO of the National Hemophilia Foundation, comments that the continuation of clinical trials with Genzyme brings the possibility of gene therapy as a cure for those suffering from hemophilia and other bleeding disorders.

Statistics:

  • Upfront cash payment of $12 million
  • Additional milestone payments and royalty payments tied to product development
  • Over $2 million in annual cost reduction by eliminating AAV manufacturing facility expenses
  • $5 million in additional savings through leasing unused facility space
  • Phase I/II study for Parkinson's disease program at UCSF
  • Avigen's AAV IP portfolio includes over 100 patents
  • Genzyme's gene therapy portfolio includes phase II clinical trials for peripheral arterial disease and preclinical work for lysosomal storage disorders and atrial fibrillation

Sources:

  • Avigen, Inc.
  • Genzyme Corp.
  • University of California, San Francisco (UCSF)
  • NewsRx.com (World Disease Weekly)

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