CLEVELAND and LONDON - Abeona Therapeutics Inc. (NASDAQ:ABEO), a biopharmaceutical company focused on cell and gene therapies, has announced a partnership with Beacon Therapeutics to explore the potential of a novel gene therapy technology for treating eye diseases. The collaboration centers on Abeona's patented AAV204 capsid, which has shown promise in preclinical studies for targeting the retina.
Under the terms of the agreement, Beacon will evaluate the AAV204 capsid for a year, with the option to license its use for up to five gene or disease targets. Beacon could also extend its rights to four additional targets under certain conditions. If Beacon exercises its licensing option, Abeona will receive an upfront payment, followed by additional funds contingent on development, regulatory, and sales milestones, as well as tiered royalties on global net sales.
AAV204, derived from Abeona's AIM™ capsid library, has demonstrated high levels of macular and optic nerve transduction in animal models, a crucial step for developing effective treatments for retinal diseases. The AIM™ library, licensed from the University of North Carolina at Chapel Hill, contains novel AAV serotypes that may offer improved delivery to tissues affected by genetic disorders and the potential to evade immune responses.
Beacon Therapeutics, supported by investment firms including Syncona and Forbion, aims to address a range of retinal diseases through gene therapy. The company has a portfolio that includes a late-stage candidate for X-linked retinitis pigmentosa and preclinical programs for dry age-related macular degeneration and cone-rod dystrophy.
Abeona's pipeline also includes therapies for ophthalmic diseases and a Phase 3 candidate for recessive dystrophic epidermolysis bullosa. The company operates a fully integrated manufacturing facility capable of supporting commercial production upon FDA approval.
The collaboration between Abeona and Beacon highlights the ongoing efforts to develop gene therapies for ophthalmic diseases with unmet medical needs.
This partnership is based on a press release statement.
In other recent news, Abeona Therapeutics has been making significant strides in its operations. Stifel, a financial services company, has initiated coverage of Abeona Therapeutics, assigning a 'buy' rating with a price target of $21.00. Stifel's optimism is primarily based on the potential of Abeona's therapy, Prademagene zamikeracel, a treatment for a rare genetic skin disorder.
However, Abeona has also faced challenges with the FDA requesting additional data for its Biologics License Application (BLA) for this therapy. Despite this, the company is committed to addressing the FDA's requirements and anticipates resubmitting the BLA in the third quarter of 2024.
In another development, Abeona has set terms for a $75 million stock offering. The offering, expected to close in May 2024, drew interest from a mix of new and existing investors. The proceeds will be used to fund preparations for the BLA resubmission, commercialization efforts for its product candidate, and other general corporate purposes.
InvestingPro Insights
In the wake of Abeona Therapeutics Inc.'s (NASDAQ:ABEO) new partnership with Beacon Therapeutics, investors may find value in exploring recent financial metrics and market performance data provided by InvestingPro. Abeona's strategic focus on cell and gene therapies, particularly with its promising AAV204 capsid, is mirrored by a significant return over the last week, with the company's stock price showing a 14.71% increase.
Despite the company's rapid cash burn, as indicated by an InvestingPro Tip, Abeona holds a stronger cash position than debt on its balance sheet, which could provide financial flexibility as it pursues its collaboration with Beacon. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a degree of resilience in managing its current liabilities.
From a valuation standpoint, Abeona's market capitalization stands at 204.4 million USD. The company's revenue has grown by an impressive 227.72% in the last twelve months as of Q1 2024, according to InvestingPro Data. However, it's important to note that Abeona's gross profit margins are negative, reflecting the high costs associated with the development of its therapies. The company's P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 is -2.64, underscoring the lack of profitability during this period, a point corroborated by an InvestingPro Tip that analysts do not expect the company to be profitable this year.
For those interested in deeper analysis and additional insights, there are 9 more InvestingPro Tips available for Abeona Therapeutics, which can be accessed through InvestingPro's platform. Investors looking to leverage these insights can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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