AGTC Raises $74.5 Million to Advance Pipeline of Gene Therapies for Rare Diseases

Rare Daily Staff

Applied Genetic Technologies raised $74.5 million to support human clinical trials of its AAV-based gene therapies for people with rare and debilitating ophthalmic, otologic, and central nervous system diseases.

The biotech priced an underwritten public offering of 16.7 million shares of its common stock, together with accompanying warrants to purchase 8.4 million shares of common stock. The common stock and accompanying warrant to purchase 0.5 of a share of common stock were priced at $4.45 per unit. The warrants must be exercised in integral multiples of two and will have an exercise price of $6.00 per share, will be immediately exercisable and will have a term of five years from the date of issuance.

AGTC intends to use the net proceeds from the offering, together with other available funds, to finance its ongoing Skyline and Vista clinical trials in its X-linked retinitis pigmentosa (XLRP) program and its ongoing phase 1/2 clinical trials in its achromatopsia (ACHM) program, and for working capital and other general corporate purposes.

X-linked retinitis pigmentosa (XLRP) is the most severe form of retinitis pigmentosa, a group of inherited retinal diseases characterized by progressive retinal degeneration and vision loss. XLRP is caused by mutations in the RPGR gene that affects boys and young men. The condition begins with night blindness and is followed by progressive constriction of the field of vision. There are currently no approved treatments for XLRP.

Achromatopsia ACHM is an inherited retinal disease that severely limits a person’s sight by preventing cone photoreceptors in the eye from functioning. Individuals with ACHM are often legally blind from birth, have extreme sensitivity to light, and experience involuntary eye movements.