Gene Therapy Boost
MeiraGTx Lands $400 Million From Oberland Capital to Advance Gene Therapies Minimizing Shareholder Dilution
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Key Points
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MeiraGTx bought back botaretigene sparoparvovec (bota-vec) from Johnson & Johnson earlier this year after J&J exited the program, with J&J returning ownership rights in April.
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The Oberland deal uses a non-dilutive, capped royalty structure with single-digit royalty rates, and royalties are capped at a multiple of the capital advanced.
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Oberland retains an option to invest an additional $15 million in MeiraGTx equity, extending potential strategic funding beyond the initial tranche.
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A Phase 2 AQUAx2 data readout for AAV2-hAQP1 is expected by year-end, with up to a $50 million milestone contingent on positive data.
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Milestones include up to $50 million after potential regulatory approvals for bota-vec and up to $50 million after approval of AAV2-hAQP1, with an additional $100 million possible for new opportunities by mutual agreement.
MeiraGTx has locked in up to $400 million from investment firm Oberland Capital to push two late-stage gene therapies toward the market, according to Fierce Biotech. The deal is structured to avoid heavy shareholder dilution, using a non-dilutive, capped royalty model — meaning Oberland gets low single-digit royalties on future sales rather than a large chunk of company stock.
An initial $135 million kicks in right away: $125 million tied to the royalty structure and a $10 million equity investment, BioPharma Dive reported. The remaining funds unlock in stages, tied to clinical data, regulatory approvals, and mutual agreement on new programs.
Two Eye Gene Therapies Drive the Deal
The financing targets two main programs. The first is bota-vec, a gene therapy for X-linked retinitis pigmentosa — a rare inherited condition that causes progressive vision loss. The second is AAV2-hAQP1, designed to treat radiation-induced xerostomia, which is severe dry mouth caused by cancer radiation treatment, according to CityBiz.
A third asset, AAV-AIPL1 for a condition called LCA4, could also be added to the deal. MeiraGTx is targeting a U.S. launch window of 2027-2028 for AAV2-hAQP1 if clinical and regulatory steps go smoothly, BioPharma Dive reported.
Milestone Payments Hinge on Clinical and Regulatory Wins
The deal is built around performance gates. Up to $50 million more becomes available if MeiraGTx reports positive data from its Phase 2 AQUAx2 trial for AAV2-hAQP1, expected by year-end, according to Fierce Biotech. Another $50 million could follow regulatory approval of bota-vec, and yet another $50 million upon approval of AAV2-hAQP1.
On top of that, up to $100 million more is possible by mutual agreement for new opportunities. Oberland also holds an option to invest an additional $15 million in MeiraGTx equity, MarketWatch noted, giving the firm room to deepen its stake if the programs continue to perform.
J&J's Exit Left Bota-Vec's Future in MeiraGTx's Hands
Bota-vec's path to market has been complicated. Johnson & Johnson exited the program and returned full ownership rights to MeiraGTx in April. That left MeiraGTx to fund and commercialize it alone, BioPharma Dive reported. The therapy's commercial future is now less certain than it was under J&J's backing.
Despite that setback, MeiraGTx remains confident. The company's CEO called the Oberland financing a strong vote of confidence in the data behind these candidates and their market potential, according to CityBiz. The deal gives the company capital to move forward without leaning heavily on new share issuance.
Royalty Structure Shields Shareholders From Heavy Dilution
Most of the $400 million — up to $375 million — comes through the capped royalty structure, Fierce Biotech reported. Royalties are capped at a set multiple of the capital advanced, so MeiraGTx's obligations are limited once that ceiling is hit. Only up to $25 million of the total package takes the form of equity.
This structure is increasingly common in biotech financing. It lets companies raise large sums without giving away significant ownership. For MeiraGTx, which trades on the Nasdaq under the ticker MGTX, protecting shareholder value while funding expensive late-stage programs was a clear priority, according to Seeking Alpha.
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