Wave Life Sciences ( NASDAQ: WVE ) and GSK ( NYSE: GSK ) are collaborating to discover oligonucleotide therapeutics for novel genetic targets.
Oligonucleotides are short strands of DNA or RNA which can reduce, restore, or modulate RNA through several different mechanisms, the companies added.
The companies noted that the collaboration includes two main components. The first is a discovery collaboration which enables GSK to advance up to eight programs and Wave to advance up to three programs, using Wave's PRISM platform and GSK's expertise in genetics and genomics.
In addition, GSK receives an exclusive global license for Wave's preclinical program for alpha-1 antitrypsin deficiency (AATD) called WVE-006, which uses Wave's 'AIMer' technology (A-to-I( G ) RNA editing).
AATD is an inherited genetic disease which affects the lungs and liver. WVE-006 is an RNA editing therapy aimed at addressing liver and lung manifestations of the disease, Wave added.
Under the agreement, Wave will receive $170M upfront, which includes $120M as cash and $50M as equity investment.
For the WVE-006 program, Wave is eligible to receive up to $225M in development and launch milestone and up to $300M in sales-related milestones, plus royalties.
The companies said development and commercialization responsibilities will transfer to GSK after Wave completes the first-in-patient study.
For each of GSK's eight collaboration programs, Wave will be eligible to receive up to $130M to $175M in development and launch milestones and $200M in sales-related milestones, plus royalties.
Wave will head all preclinical research for GSK and Wave programs up to investigational new drug (IND) enabling studies.
GSK collaboration programs will transfer to GSK for IND-enabling studies, clinical development, and commercialization, according to the companies.
The collaboration includes an option to extend the research term for up to three more years, expanding the number of programs available to both parties.
The transactions are subject to conditions, including U.S. antitrust clearance.
WVE +21.57% to $4.39 premarket Dec. 13
GSK +1.88% to $36.38 premarket
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Wave Life stock surges 20% in team up with GSK for genetic diseases