Passage Bio Announced Out-Licensing of Three Pediatric Lysosomal Storage Disease Programs to GEMMA Biotherapeutics for $20M Initial Payments and Up to $114M in Milestones, Plus Future Royalties

Author: Benzinga Newsdesk | August 01, 2024 07:13am

Passage Bio, Inc. (NASDAQ:PASG), a clinical-stage genetic medicines company focused on improving the lives of patients with neurodegenerative diseases, today announced that it has entered into a series of agreements to out-license its three clinical-stage pediatric lysosomal storage disease programs to GEMMA Biotherapeutics, Inc. (GEMMABio), a newly formed company co-founded by James M. Wilson, M.D., Ph.D. Through the transaction, the company granted GEMMABio exclusive, worldwide rights for the development and commercialization of PBGM01 for the treatment of GM1 gangliosidosis, PBKR03 for the treatment of Krabbe disease, and PBML04 for the treatment of metachromatic leukodystrophy. Under the terms of the out-license agreements, the company will receive initial payments of $10 million for the purchase of clinical product supply and up to an additional $10 million contingent on completion of certain GEMMABio business milestones. The company is also eligible to receive up to an additional $114 million in development and commercial milestones as well as future royalties in exchange for sublicenses to relevant intellectual property and the transfer of clinical trial materials and product supply related to the licensed programs. GEMMABio will assume all remaining financial obligations owed to the University of Pennsylvania for the licensed programs. Passage Bio will also provide certain services in support of the transition of the programs to GEMMABio at cost pursuant to a transition services agreement.

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