Editas sells some Vertex CRISPR therapy rights for $57m

Editas Medicine has secured a $57 million cash injection by selling a portion of its future revenue stream from Vertex Pharmaceuticals to a DRI Healthcare subsidiary. This strategic decision follows a December 2023 license agreement where Vertex paid Editas $50 million for the nonexclusive rights to its ex vivo Cas9 gene editing technology, aimed at the BCL11A gene involved in blood disorders such as sickle cell disease and beta-thalassemia.

The technology in question includes Casgevy, the pioneering gene therapy co-developed by Vertex and CRISPR Therapeutics, specifically for treating these blood disorders. The agreement allowed Vertex to leverage Editas’s gene-editing tools for further advancements in gene therapy.

Under the new deal, Editas will receive $57 million upfront but will forgo up to 100% of specific future annual payments from Vertex, which could be between $5 million and $40 million per year. Moreover, Editas also relinquishes part of a potential $50 million contingent on Vertex meeting certain milestones. However, Editas retains rights to fixed payments for 2024 and may receive extra compensation if Vertex reaches specific sales goals.

This transaction is part of Editas's strategy to bolster its cash reserves by monetizing future payments. Meanwhile, DRI Healthcare gains access to potential recurring revenue from Vertex’s licensing fees. Gilmore O’Neill, CEO of Editas, commented on the deal, expressing satisfaction in partnering with DRI to secure significant capital to advance their pipeline of innovative medicines.

The arrangement follows a protracted legal dispute over the ownership of CRISPR technology patents. Discovered by multiple researchers, CRISPR was recognized with the 2020 Nobel Prize in Chemistry, awarded to Emmanuelle Charpentier and Jennifer Doudna. Charpentier, who founded CRISPR Therapeutics, and the University of Vienna joined forces with the University of California to challenge the Broad Institute at MIT and Harvard over the patent rights. Despite their efforts, the Broad Institute won a US Patent and Trademark Office ruling in February 2022.

Editas licensed CRISPR technology from the Broad Institute, obtaining exclusive rights to use certain patents for human applications, including RNA-guided nuclease Cas9, which are either owned or co-owned by The Broad Institute of MIT and Harvard and the Rockefeller University. This was confirmed by a December 2023 press release from Editas.

The legal contention continues, with Charpentier's and Doudna’s patents facing challenges in both US and European patent courts. In August 2024, a European technical appeals board weakened their European patents, stating that their initial patent filing lacked clear instructions on using CRISPR, thus not qualifying as a proper invention.

Through these strategic moves, Editas aims to strengthen its financial position and progress its therapeutic pipeline, while navigating ongoing legal battles over the foundational patents for CRISPR technology.