In today’s assessment of the US stock charts, Avidity Biosciences, Inc. (NASDAQ: RNA) exhibited a notable surge of 11.04%, reaching $6.84 in the current session. This uptick in Avidity’s stock value is attributable to an expansion move in collaboration.
Avidity (RNA) has formally disclosed a comprehensive licensing and research collaboration with Bristol Myers Squibb, signaling a collective effort toward the exploration, advancement, and commercialization of various cardiovascular targets. The collaboration is expected to generate a cumulative inflow of $2.3 billion.
In this collaboration, antibody oligonucleotide conjugates (AOCs) are of critical importance. They combine the targeted efficacy of monoclonal antibodies with the precision of oligonucleotide therapies to address the root causes of previously incurable diseases via RNA therapeutics.
This strategic collaboration signifies an extension of AOCs’ influence through the amplification of the existing partnership with Bristol Myers Squibb. Concurrently, Avidity maintains its commitment to advancing internal research and development initiatives, particularly in rare cardiac indications.
According to the agreement’s stipulations, RNA stands to receive an upfront payment of $100 million, inclusive of a $60 million cash component. Furthermore, the agreement encompasses the acquisition of approximately $40 million worth of Avidity common stock at a rate of $7.88 per share.
RNA is also entitled to potential research and development milestone payments, amounting to around $1.35 billion, with an additional provision for commercial milestone payments totaling up to approximately $825 million. Additionally, tiered royalties, extending to low double-digits on net sales, constitute part of the financial arrangement.
Bristol Myers Squibb is committed to funding all forthcoming clinical development, regulatory processes, and commercialization endeavors arising from this collaborative initiative. As global leaders in cardiovascular drug discovery and development, Bristol Myers Squibb’s involvement in this strategic collaboration reinforces Avidity’s dedication to advancements in cardiology.
RNA remains steadfast in progressing its independent research and development initiatives concerning cardiac indications. Avidity aims to extend the applicability of the AOC platform to address debilitating conditions that were hitherto beyond the reach of existing RNA therapies.
The collaboration with Bristol Myers Squibb stands distinct from Avidity’s internal discovery pipeline, which encompasses research and development candidates targeting rare skeletal muscle conditions and rare cardiac muscle diseases. Avidity is presently advancing three distinct Phase 1/2 programs in the clinic, focusing on rare diseases.
