Oxford BioMedica in £842.5m deal with Axovant

 Oxford BioMedica in a £738.88m deal with Axovant which specialises in treatment for neurological diseases is a subsidiary of Roivant Sciences.

Oxford BioMedica, one of Britain’s oldest biotech companies, has sealed an $842.5m ( £738.88m) deal with Axovant Sciences of the US to commercialise its gene therapy for Parkinson’s disease.

New of the worldwide deal pushed Oxford BioMedica’s shares up 19 per cent to 862p in London but Axovant shares which had fallen more than 90 per cent over the past year following its failure of its Alzheimer’s drug intepirdine, their value more than doubled in early Nasdaq trading.

As per the deal, Oxford BioMedica will receive $30m upfront payment. The company founded out of Oxford University in1995, is eligible to receive $812m if it achieves specified development, regulatory and sales milestones receiving 7 per cent royalties on sales of the Parkinson’s product.

The deal with act as a catalyst in the clinical testing of Oxford BioMedica’s Parkinson’s disease gene therapy, which started 10 years ago. It uses a genetically modified virus to carry three genes into patients‘ brain cells. These neurons can then make enzymes vital for the production of dopamine, the neurochemical that is lacking in those who have Parkinson’s disease.

John Dawson, CEO said: “We believe Axovant is perfectly positioned to bring AXO-Lenti-PD to the market as quickly as possible to treat patients with Parkinson’s disease. Which still has a high unmet need”.