Looking to bolster its metabolic disease franchise, Regenxbio Inc. (NASDAQ:RGNX) on Friday agreed to pay $3.41 per share to acquire Dimension Therapeutics, Inc. (NASDAQ:DMTX). The all-stock deal values the embattled Cambridge, Massachusetts gene therapy company at approximately $86.0 million.
Shares of Dimension have crumbled in 2017 following data from a Phase 1/2 study of DTX101, which showed the gene therapy would likely fail as a treatment for hemophilia B.
Rockville, Maryland-based Regenxbio's prizes in the buyout are two early-stage therapies, DTX301 and DTX401. Both drugs are being developed under Orphan Drug Designations from the FDA, designations underpinned by the therapies addressing areas of unmet need in diseases or conditions that affect less than 200,000 people annually.
The designation has the potential to expedite development of new therapeutics.
DTX301, the more developed of the two, is currently in a Phase 1/2 trial as a new therapy for ornithine transcarbamylase (OTC) deficiency. DTX401 is being developed for the treatment of glycogen storage disease type Ia.
Regenxbio also snags DXT201, a therapy being developed through a partnership with industry giant Bayer, with expectations that an investigational new drug application will be filed with the FDA early next year to begin clinical studies for the treatment of hemophilia.
Per the deal, shareholders of Dimension will receive 0.1573 shares of RGNX for each share owned. Based upon the terms, current DMTX shareholders will own about 10.9% of the merged company. Both boards have approved the transaction.
Shares of DMTX have charged ahead to $3.00 in Friday morning trading, a gain of 150% from Thursday's close. Shares of RGNX are down by 4.4% at $20.75, as traders don't seem jazzed about the acquisition.
