We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novartis to License VYGR's Capsid for Gene Therapy in Neurology
Read MoreHide Full Article
Swiss pharma giant Novartis (NVS - Free Report) has agreed to license a novel capsid generated from Voyager Therapeutics, Inc’s (VYGR - Free Report) capsid platform for use in a gene therapy program.
Per Voyager, NVS will use this novel capsid for use in a gene therapy program against an undisclosed rare neurologic disease target.
Shares of Novartis have risen 15.4% year to date compared with the industry’s growth of 27%.
Image Source: Zacks Investment Research
Novartis’ Deal With VYGR
VYGR granted this capsid license to NVS per the terms of their agreement, which was originally announced in March 2022.
As per this agreement, Novartis may exercise options to license novel adeno-associated virus (AAV) capsids generated from Voyager’s RNA-driven TRACER (Tropism Redirection of AAV by Cell-type-specific Expression of RNA) capsid discovery platform for potential use with three undisclosed CNS targets. NVS also has options to access capsids for two additional targets, which will be decided in future.
Voyager will receive an upfront of $15 million from Novartis for this current capsid license. VYGR is also eligible to receive up to $305 million in associated potential development, regulatory and commercial milestone payments, as well as tiered mid- to high-single digit royalties on a potential product incorporating the licensed capsid for this target.
The license agreement between Voyager and Novartis includes five gene therapy programs — Huntington’s disease, spinal muscular atrophy (SMA) and three undisclosed indications.
NVS Focuses on Pharmaceutical Business
With the successful spin-off of the Sandoz business in 2023, Novartis is now a pure-play innovative medicine company with a focus on core therapeutic areas — cardiovascular, renal and metabolic, immunology, neuroscience and oncology.
NVS already has one-time intravenous gene therapy, Zolgensma (onasemnogene abeparvovec), in its portfolio. Zolgensma is designed to address the genetic root cause of SMA by replacing the function of the missing or nonworking SMN1 gene.
It is approved in the United States, the EU and other countries to treat babies and young children who have SMA with biallelic mutations in the SMN1 gene.
Novartis’ performance in the second quarter was impressive. Sales increased 11%, driven by momentum in Entresto, Kesimpta, Kisqali, Cosentyx, Pluvicto and Leqvio. The rise in operating income guidance indicates strong momentum across all key brands in the upcoming quarters.
The pipeline progress is encouraging as well. The company is now focused on strengthening its core pharmaceutical business with strategic acquisitions and deals. The recent acquisition of MorphoSys should further expand its oncology pipeline.
In the past 60 days, estimates for Krystal Biotech’s 2024 earnings per share have increased from $1.98 to $2.37. Earnings per share estimates for 2025 have improved from $4.33 to $7.59. Year to date, shares of KRYS have risen 50%.
In the past 60 days, estimates for Fulcrum Therapeutics’ 2024 loss per share have narrowed from $1.24 to 48 cents. Loss per share estimate for 2025 has narrowed from $1.71 to $1.51. Year to date, shares of FULC have jumped 27.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Novartis to License VYGR's Capsid for Gene Therapy in Neurology
Swiss pharma giant Novartis (NVS - Free Report) has agreed to license a novel capsid generated from Voyager Therapeutics, Inc’s (VYGR - Free Report) capsid platform for use in a gene therapy program.
Per Voyager, NVS will use this novel capsid for use in a gene therapy program against an undisclosed rare neurologic disease target.
Shares of Novartis have risen 15.4% year to date compared with the industry’s growth of 27%.
Image Source: Zacks Investment Research
Novartis’ Deal With VYGR
VYGR granted this capsid license to NVS per the terms of their agreement, which was originally announced in March 2022.
As per this agreement, Novartis may exercise options to license novel adeno-associated virus (AAV) capsids generated from Voyager’s RNA-driven TRACER (Tropism Redirection of AAV by Cell-type-specific Expression of RNA) capsid discovery platform for potential use with three undisclosed CNS targets. NVS also has options to access capsids for two additional targets, which will be decided in future.
Voyager will receive an upfront of $15 million from Novartis for this current capsid license. VYGR is also eligible to receive up to $305 million in associated potential development, regulatory and commercial milestone payments, as well as tiered mid- to high-single digit royalties on a potential product incorporating the licensed capsid for this target.
The license agreement between Voyager and Novartis includes five gene therapy programs — Huntington’s disease, spinal muscular atrophy (SMA) and three undisclosed indications.
NVS Focuses on Pharmaceutical Business
With the successful spin-off of the Sandoz business in 2023, Novartis is now a pure-play innovative medicine company with a focus on core therapeutic areas — cardiovascular, renal and metabolic, immunology, neuroscience and oncology.
NVS already has one-time intravenous gene therapy, Zolgensma (onasemnogene abeparvovec), in its portfolio. Zolgensma is designed to address the genetic root cause of SMA by replacing the function of the missing or nonworking SMN1 gene.
It is approved in the United States, the EU and other countries to treat babies and young children who have SMA with biallelic mutations in the SMN1 gene.
Novartis AG Price, Consensus and EPS Surprise
Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote
Novartis’ performance in the second quarter was impressive. Sales increased 11%, driven by momentum in Entresto, Kesimpta, Kisqali, Cosentyx, Pluvicto and Leqvio. The rise in operating income guidance indicates strong momentum across all key brands in the upcoming quarters.
The pipeline progress is encouraging as well. The company is now focused on strengthening its core pharmaceutical business with strategic acquisitions and deals. The recent acquisition of MorphoSys should further expand its oncology pipeline.
NVS’ Zacks Rank & Other Stocks to Consider
NVS currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the pharma/biotech industry are Krystal Biotech, Inc. (KRYS - Free Report) and Fulcrum Therapeutics, Inc. (FULC - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Krystal Biotech’s 2024 earnings per share have increased from $1.98 to $2.37. Earnings per share estimates for 2025 have improved from $4.33 to $7.59. Year to date, shares of KRYS have risen 50%.
In the past 60 days, estimates for Fulcrum Therapeutics’ 2024 loss per share have narrowed from $1.24 to 48 cents. Loss per share estimate for 2025 has narrowed from $1.71 to $1.51. Year to date, shares of FULC have jumped 27.9%.