Otsuka Pharmaceutical and Shape Therapeutics Ink Potential $1.5B Deal to Develop Eye AAV Gene Therapies

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Japan’s Otsuka Pharmaceuticals on Thursday announced a multi-target collaboration with RNA editing biotech Shape Therapeutics to develop intravitreal adeno-associated virus gene therapies for ocular diseases.

While the companies did not provide full details of the financial terms, they revealed that the contract has a potential aggregate value exceeding $1.5 billion, which includes an upfront payment from Otsuka. This sum also takes into account potential development, regulatory and sales milestone payments.

Seattle-based Shape will also remain eligible for tiered royalties on future sales of any product that results from this agreement.

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