Shares of MeiraGTx Holdings PLC (MGTX) surged 14% in premarket trading on Monday following the announcement of a $30 million investment by French drugmaker Sanofi (SNY).
Strengthening the Collaboration
As part of the deal, Sanofi acquired 4 million ordinary shares of MeiraGTx at a price of $7.50 per share. Additionally, Sanofi has secured a right of first negotiation for the utilization of MeiraGTx’s revolutionary Riboswitch gene regulation technology across specific areas such as immunology and inflammation, central nervous system disorders, metabolic diseases, and more.
Exploring Further Opportunities
The promising potential of MeiraGTx has also attracted significant interest from other parties. The company has been approached by multiple strategic investors who have expressed an interest in various assets. MeiraGTx is actively pursuing these options to expand its growth and impact.
Embracing Technological Innovation
Sanofi CEO Paul Hudson acknowledged and welcomed the technological advancements offered by MeiraGTx’s Riboswitch platform. He stated, “We believe that MeiraGTx’s Riboswitch platform, supported by its unique manufacturing capabilities, is a breakthrough technology that aligns with our aim to pursue scientific miracles.”
Building on Collaborations
Sanofi’s investment in MeiraGTx follows its recent partnership expansion with Scribe Therapeutics Inc. for the development of in vivo therapies targeting sickle cell disease using Scribe’s gene editing technology.
Future Prospects
MeiraGTx’s pioneering gene regulation technology, which utilizes precisely controlled pills to determine the production of gene therapy, has shown great promise. The company currently has six clinical development programs underway.
Market Performance
MeiraGTx shares have experienced a decline of 43% year-to-date, while the S&P 500 has gained 7.2%. Sanofi’s American depositary receipts witnessed a 1.8% increase in premarket trading on Monday, but have declined by 10.9% thus far this year.