Benitec and Axovant terminate license deal

Australian biotech firm Benitec Biopharma (ASX: BLT) today announced the termination of the license and collaboration agreement with Axovant Sciences (Nasdaq: AXON), as the Benitec team endeavors to conduct several additional exploratory analyses prior to the initiation of the clinical study in order to potentially improve the biological efficacy of the compound via further optimization of the proprietary delivery method employed to dose the target tissues.

Under the terms of the deal signed in July last year, the total potential value of all of the development, regulatory and commercial milestones achievable by Benitec, of which there are eight milestones including the four near-term milestones, was $187.5 million, with an upfront cash payment of $10 million. Following the announcement, Benitec’s shares plunged 25.95% to $1.17 in Nasdaq trading.

Preclinical data derived from recently concluded in vivo evaluations of AXO-AAV-OPMD (formerly designated as BB-301) in two distinct large animal species suggest that the opportunity exists to further improve the biological efficacy of the compound via additional optimization of the proprietary delivery method employed to dose key target tissues that underlie the morbidity and mortality associated with the progression of oculopharyngeal muscular dystrophy.