October 29, 2015
By
Mark Terry
, BioSpace.com Breaking News Staff
Novato, Calif.-based
Ultragenyx Pharmaceutical Inc.
,
announced
today that it has inked a research and collaboration deal with San Diego-based
Arcturus Therapeutics, Inc.
The two companies will work to identify and develop messenger RNA (mRNA) therapeutics for rare disease targets utilizing
Arcturus
’ UNA Oligomer chemistry and LUNAR nanoparticle delivery program.
Ultragenyx
will pay
Arcturus
an upfront payment of $10 million.
Arcturus
will be eligible for various milestone payments up to $156 million for each target, as well as mid-single to low double-digit royalties on any commercial sales, and research reimbursement.
“This collaboration with
Arcturus
will help us address a wider range of rare diseases than is possible with currently available approaches,” said
Emil Kakkis
, chief executive officer of
Ultragenyx
, in a statement. “The joint program combines
Arcturus
’ technology platform, which we believe solves some of the key issues associated with mRNA therapeutics, with
Ultragenyx
’s expertise in rare disease drug development.”
Ultragenyx
focuses on clinical-stage treatments for rare and ultra-rare diseases. It has numerous compounds in its pipeline, including KRN23, for treatment of X-Linked Hypophosphatemia (XLH) and tumor-induced osteomalacia (TIO), recombinant human beta-glucuronidase (rhGUS) for Sly Syndrome, also known as mucopolysaccharidosis 7 (MPS 7), and UX007 (triheptanoin) for long-chain fatty acid oxidation disorders (LC-FAOD), which are linked to several serious liver, muscle and heart diseases. The company has several ongoing programs as well.
Arcturus
, founded in 2013, focuses on RNA technologies. It has several RNAi and mRNA programs, such as LUNAR-101 for cardiomyopathy and LUNAR-TPO for Thrombopoietin, and LUNAR-CF for cystic fibrosis. The company has three major platforms, LUNAR, which stands for Lipid-enabled and Unlocked Nucleic Acid modified RNA delivery, UNA, or unlocked nucleomonomer agent (UNA) oligomer, and RNAi.
On Jan. 9, 2015,
Arcturus
announced
a partnership with Vancouver, Canada-based
Precision NanoSystems
to research and develop RNA medicines.
Precision
’s NanoAssemblr platform will be used to manufacture GMP batches to support clinical studies and commercial development using the LUNAR RNA Therapeutics platform. In June, it signed a
research collaboration deal
with
Johnson & Johnson
.
Ultragenyx
went public
in July, closing on its public offering of 2,530,000 shares of common stock priced to the public at $120 per share.
Ultragenyx
traded for $134.09 on July 20, dropped to $93.51 on Aug. 24, went back up to $131.47 on Sept. 17, then dropped to $81.13 on Oct. 14. It is currently trading up at $106.20.
On Oct. 23, an
analyst
with
Jefferies and Co.
rated
Ultragenyx
a “buy” with a price target of $108. Price targets among eight analysts ranged from $79 to $125, according to Thomson/First Call.
JP Morgan Chase & Co.
gave
the company an “overweight” rating and set a price target of $119 on Aug. 14.
Morgan Stanley
gave it an “equal weight” rating and set a price target of $126 on July 27. Zacks gave a “sell” rating on July 14, and on July 9, JMP Securities set an “outperform” rating with a $119 price target.
Ultragenyx
has raised $700 million in the last two years. The deal with
Arcturus
has the potential to raise $1.5 billion in milestone payments.
Also working in the same area of mRNA development is Cambridge, Mass.-based
Moderna Therapeutics
.
Moderna
has an
interesting business model
, essentially spinning out companies using their technology to focus on specific disease states. To date,
Moderna
launched Onkaido, focused on oncology, Valera, focused on vaccines and antivirals and anti-bacterial agents, and Elpidera, for rare diseases. In October,
Moderna
launched
Caperna
, which will focus on cancer vaccines.
In particular, Elpidera is competing in the same space as
Ultragenyx
and
Arcturus
. In January 2014,
Moderna
inked a
strategic agreement
with
Alexion Pharmaceuticals Inc.
that gives
Alexion
10 product options in rare diseases. Elpidera will push forward programs independent of the
Alexion
programs, while also supporting
Alexion
.
Of today’s agreement,
Joseph Payne
, president and chief executive officer of
Arcturus
, said in a statement, “The
Ultragenyx-Arcturus
partnership is an ideal combination to leverage the potential of mRNA therapeutics to provide important new treats for rare disease patients.
Arcturus
is thrilled to work with
Ultragenyx
, one of the premier rare disease companies, to identify treatments for challenging rare disease targets using our messenger RNA therapeutics platform.”