MeiraGTx (MGTX.US) achieves gene therapy cooperation with LLY.US, stock surges before market opening.

Gene therapy company MeiraGTx Holdings (MGTX.US) saw its stock price rise by 13.22% in pre-market trading on Monday, after the company announced a broad strategic collaboration with Eli Lilly (LLY.US) to jointly develop and commercialize gene therapy for eye diseases. Under the agreement, the New York-based biotechnology company will grant Lilly global exclusive rights to its AAV-AIPL1 gene therapy program for the development of a drug targeting a genetic eye disease. The disease is Leber congenital amaurosis 4 (LCA4), caused by a defect in the aryl hydrocarbon interacting protein-like 1 (AIPL1) gene, which MeiraGTx has identified as one of the most severe genetic retinal disorders. As part of the agreement, the Indiana-based pharmaceutical giant will also gain rights to some of MeiraGTx's other gene therapy technologies. In exchange, MeiraGTx will receive a $75 million upfront payment, and could receive over $400 million in additional payments after reaching certain milestones. Additionally, the company will be eligible for tiered royalties from potential sales of the licensed products.