ARTICLE | Company News

RegenxBio acquiring gene therapy play Dimension

August 25, 2017 8:28 PM UTC

RegenxBio Inc. (NASDAQ:RGNX) will acquire Dimension Therapeutics Inc. (NASDAQ:DMTX) in a stock deal. For each share held, Dimension shareholders will receive 0.1573 RegenxBio shares, which the companies say implies a value of $3.41 per Dimension share. The implied price is a 184% premium to Dimension's close of $1.20 on Thursday, the day before the deal was announced. Dimension, which had 25.1 million shares outstanding on Aug. 1, will become a RegenxBio subsidiary; Dimension shareholders will own about 10.9% of the combined company. The partners expect the deal to close by year end.

RegenxBio will gain Dimension's lead products DTX301 and DTX401. DTX301, an adeno-associated virus 8 (AAV8) vector that delivers the ornithine transcarbamylase (OTC; OTCD) gene to liver cells, is in Phase I/II testing to treat OTC deficiency. An IND submission is slated for early 2018 for DTX401, an AAV vector that delivers glucose-6-phosphatase catalytic subunit-related protein (G6PC; G6Pase), to treat glycogen storage disease type Ia (GSDIa). Both candidates have Orphan Drug designation in the U.S. and EU...