Editas Converts Vertex Payments into Immediate Liquidity through DRI Agreement

Editas Converts Vertex Payments into Immediate Liquidity through DRI Agreement

Editas Converts Vertex Payments into Immediate Liquidity through DRI Agreement

Dive Brief:

  • Editas Medicines, a company specializing in gene editing, has agreed to sell its licensing fees and future payments from an arrangement with Vertex Pharmaceuticals to DRI Healthcare Trust for an upfront payment of million.
  • Last year, Vertex made a payment of million to Editas for the rights to its CRISPR technology, which included a promise for an additional million in future payments and annual licensing fees potentially reaching million. This agreement was made shortly after Vertex secured U.S. approval for its CRISPR-based therapy for sickle cell disease, Casgevy.
  • As part of the recent agreement, DRI Healthcare Trust will receive as much as 100% of the future annual licensing fees, which could vary from million to million, in addition to a mid-double-digit percentage of Editas’ share of the contingent million payment from Vertex. Editas will maintain rights to the fixed annual licensing fees for this year and intends to utilize the million received from DRI to further advance its pipeline.

Dive Insight:

Editas, one of the pioneering biotech firms focused on advancing CRISPR gene editing, is undergoing a multi-year reconstruction.

The company faced clinical setbacks and encountered significant executive role changes. At the start of the previous year, the company reduced its staff by 20% and streamlined its pipeline, which included experimental therapies for two eye conditions. Mark Shearman, who had been appointed chief scientific officer in 2021, also resigned around this time.

In July, the company appointed Biogen veteran Linda Burkly as the new chief scientific officer, revitalizing its focus on a treatment for sickle cell disease and beta-thalassemia. Editas plans to announce more clinical trial data by year-end.

The million from DRI will enhance Editas’ financial position. As of June 30, 2024, the company reported holding 8 million in cash and cash equivalents, with indications these funds would support operations into 2026.

Gilmore O’Neill, the CEO of Editas, expressed that the company would deploy the new resources “immediately as we work on developing our pipeline of future therapies.”

Other biotech firms have engaged in similar transactions, exchanging future payments for immediate financial influx, including Agios Pharmaceuticals and BridgeBio Pharma.