April 22 Quick Takes: Obsidian deal adds to Vertex’s expanding gene editing toolbox; plus Zai, Blackstone, ITM, EdiGene, Zymergen
The latest deal in Vertex’s strategy to shore up gene editing capabilities is a $75 million research collaboration and licensing deal with Obsidian to discover small molecule-regulated gene editing therapies. Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) will pay Obsidian Therapeutics Inc. $75 million up front and up to $1.3 billion in research, development, regulatory and commercial milestone payments in exchange for exclusive options on up to five tunable gene editing therapy programs for undisclosed indications created with Obsidian’s cytoDRiVE technology. Vertex, which was historically focused on small molecule development for cystic fibrosis, has been branching out into new indications and new modalities including CRISPR-based gene editing and mRNA therapies.
Following last week’s double-digit gain after a partner’s clinical update, Zai Lab Ltd. (NASDAQ:ZLAB; HKEX:9688) raised $750 million in a follow-on, roughly 30% of which it intends to use for business development including in-licensing opportunities, according to its prospectus. The raise included the sale of ADSs on NASDAQ as well as ordinary shares settled in Hong Kong dollars. Zai gained 22% on April 13 after partner Novocure Ltd. (NASDAQ:NVCR) said it would downsize and shorten a trial of its Tumor Treating Fields product to treat non-small cell lung cancer, potentially reducing time to approval in the indication; Zai holds rights in Greater China...