MeiraGTx Holdings PLC (NASDAQ:MGTX) shares gained more than 25% after it announced Sanofi SA (ADR) (NYSE:SNY), a pharma giant best known for its vaccines, is purchasing 4 million of the gene company’s shares at a price of $7.50 per share for a total $30 million investment.
MeiraGTx stock was up 25.4% at US$4.64 late morning on Monday, while Sanofi shares gained 3.5% at US$44.63.
Per the terms of the investment, Sanofi will receive a right of first negotiation of the use of MeriaGTx’s Riboswitch gene regulation technology for certain immunology and inflammation and central nervous system targets, for GLP-1 and other gut peptides for metabolic disease, and for MeiraGTx’s Phase 2 Xerostomia program.
“We are very pleased with this first strategic investment from Sanofi,” MeiraGTx CEO Dr. Alexandria Forbes said.
“We view Sanofi’s interest in our Riboswitch gene regulation technology and our clinical Xerostomia program as further validation of the broad potential of our vertically integrated platform and we are excited to work with Sanofi as we advance these programs.”
Sanofi CEO Paul Hudson commented: “We look forward to working alongside MeiraGTx as this innovative science moves forward to create a new generation of breakthrough medicines for immune-mediated and neurological diseases.”
Additionally, MeiraGTx said it has been approached by multiple parties interested in different assets of the company and that it is actively pursuing these options.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on X, formerly known as Twitter, @emilyjjarvie