Japan's Astellas Pharma ( OTCPK:ALPMF ) ( OTCPK:ALPMY ) is acquiring a 15% stake in Taysha Gene Therapies ( NASDAQ: TSHA ) for $50M to support the advancement of Taysha's gene therapy programs for Rett syndrome and giant axonal neuropathy (GAN).
Under the agreement, Astellas will invest $50M to acquire 15% of the outstanding common stock of Taysha and to receive an exclusive option to license two clinical stage programs.
The first is TSHA-102 for Rett syndrome — rare genetic neurological and developmental disorder affecting brain development and causes loss of movement functions. The disorder affects mostly girls.
The second is TSHA-120 for GAN — a rare inherited genetic disorder which affects the central and peripheral nervous systems.
Astellas will also receive one board observer seat at Taysha.
In addition, Taysha said it granted Astellas certain rights related to any potential change of control of the company.
Definitive agreements would be executed if Astellas exercises any such option, and any change of control transaction would need approval by Taysha's stockholders, the company added.
"Taysha is an industry leader in CNS gene therapies and this partnership fits strategically with our long-term vision of expanding Astellas' gene therapy capabilities," said Astellas Chief Strategy Officer Naoki Okamura.
TSHA +36.42% to $2.06 premarket Oct. 25
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Taysha Gene stock soars 36% as Astellas to pick 15% stake for $50M