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A very expensive do-over
MeiraGTx is taking bota-vec, its gene therapy for X-linked retinitis pigmentosa, back from Johnson & Johnson in an asset purchase deal. The company will pay $25 million upfront, plus a future regulatory milestone tied to U.S. approval and sales performance, which is corporate speak for: “We really want this thing back, and we’ll pay more if it works.”
Why investors are squinting at this one
On paper, this gives MeiraGTx more control over a program it thinks could matter a lot. The company says it wants to file in the U.S. and Europe fast and is aiming for a possible 2027 launch. That’s the good news. The less-fun part? The deal arrives alongside a freshly priced equity offering of 11.11 million shares at $9 each, bringing in about $100 million and reminding everyone that growth stories usually come with a side of dilution.
Two shots on goal, if the science cooperates
MeiraGTx is also waving around encouraging three-year data for AAV-hAQP1 in radiation-induced xerostomia, with symptom improvements sticking around and the therapy looking safe and well-tolerated. Add in the company’s prior licensing deal with Eli Lilly for AAV-AIPL1, and you’ve got a pipeline that suddenly looks a lot more like a commercial plan than a science fair project.
The market’s verdict: show me the money
Even with the strategic upside, the stock dropped more than 15% Thursday as investors digested the financing and the execution risk all at once. Big picture: MeiraGTx may have just upgraded its ambition, but now it has to prove it can turn gene-therapy buzz into actual revenue without burning through cash like it’s free samples at Costco.