Axovant Sciences Ltd (NASDAQ: AXON) is off to yet another incredibly strong start to the trading session this morning. The gains started yesterday with a gain of 160% by the closing bell. Today, those gains are continuing in a massive way. So, what’s the deal? The company announced that it has licensed an investigational gene therapy and added a member to its management team, leading to excitement among investors. Today, we’ll talk about:
- The news that led to the gains;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
AXON Licenses Product And Adds Management Team Member
As mentioned above Axovant is having yet another incredibly strong day in the market today after the company made a big announcement yesterday. The announcement started with the acquisition of a license for development and commercialization rights to OXB-102. Upon the execution of the agreement, the product was renamed AXO-Lenti-PD. The treatment is an investigational gene therapy for patients with Parkinson’s disease. Also, AXON will receive rights to ProSavin.
From the financial standpoint, AXON has agreed to pay an upfront payment of $30 million to Oxford BioMedica. In the release, the Axovant said that $5 million of the upfront payment will go towards a credit against process development work and clinical supplies. Also, Oxford BioMedical will be eligible to receive development, regulatory, and commercial milestone payments as well as tiered royalties surrounding the gene therapy if it is approved.
Finally, AXON announced that Fraser Wright will join the company’s leadership team as Chief Technology Officer (CTO) for gene therapy initiatives. With him, Wright brings tremendous experience as the co-founder and former CTO of Spark Therapeutics. In fact, with the announcement, Sprk Therapeutics (ONCE) fell 2.7% in value.
What We’re Seeing From The Stock Today
With the tremendous run, bringing Axovant 160% higher yesterday, investor excitement is continuing, leading to massive gains today as well. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:38), AXON is trading at $5.65 per share after a gain of $1.10 per share or 24.18% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AXON. In particular, we’re interested in following the story surrounding the company’s new product and work in the gene therapy space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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