Shares of biotechnology company Generation Bio (NASDAQ:GBIO) are soaring higher today after it announced a strategic collaboration with vaccines maker Moderna (NASDAQ:MRNA), combining the latter’s biological and technical expertise with the former’s non-viral genetic medicine platform.
The two companies aim to develop novel nucleic acid therapeutics, extending genetic medicines to new tissues and cell types. Under the agreement, Moderna may advance two immune cell programs and two liver programs while also retaining an option to license a third program for either immune cells or the liver.
Further, GBIO gets a $40 million upfront cash payment alongside a $36 million equity investment. The company can also receive future milestone payments as also royalties on sales globally. Moderna will fund the R&D work under the collaboration.
Overall, the Street has a $12 consensus price target on GBIO implying a mouth-watering 209.2% potential upside in the stock. That’s after a nearly 42% slump in the share price over the past year.
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