ALPMY - Selecta Biosciences stock rises 10% on license deal with Astellas for Xork

Selecta Biosciences ( NASDAQ: SELB ) stock rose ~10% on Monday after the company said it signed an exclusive licensing and development agreement with Astellas Pharma ( OTCPK:ALPMF ) ( OTCPK:ALPMY ) for IdeXork (Xork).

The companies noted that Xork is being studied as a potential next generation immunoglobulin G (IgG) protease that will be developed by Astellas for use with AT845, a potential adeno-associated virus (AAV)-based therapy for Late-Onset Pompe disease (LOPD) in adults.

Under the agreement, Selecta will receive $10M upfront and is eligible to receive up to $340M for certain additional development and commercial milestones plus royalties on any potential sales where Xork is used as a pre-treatment for AT845.

Selecta said it is responsible for developing and manufacturing Xork and will maintain the rights for the development of additional indications beyond Pompe disease.

Astellas will have the sole and exclusive right to commercialize Xork for use in Pompe disease with an Astellas gene therapy investigational or authorized product, with current focus on AT845, the companies added.

"This agreement provides an opportunity to deliver potentially transformative gene therapy treatments to a specific population of LOPD adult patients who might otherwise be ineligible for clinical trials or treatment with Astellas' investigational product," said Astellas Chief Strategy Officer Naoki Okamura.

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