RegenXBio has secured a significant royalty monetization agreement valued at up to $250 million, primarily involving payments from Novartis for its gene therapy Zolgensma and other therapies under development.

The deal provides RegenXBio with an upfront payment of $150 million, with an additional $50 million contingent on Zolgensma achieving specific sales milestones by April 2027, and another $50 million available upon mutual agreement.

RegenXBio plans to utilize this financing to enhance its portfolio and prepare for potential product launches, including the anticipated FDA approval of RGX-121 and forthcoming data readouts for other therapies.

The company's CFO highlighted the critical role of non-dilutive capital in unlocking shareholder value and accelerating commercial preparations.

In a related agreement, Nippon Shinyaku will commercialize RGX-121 and RGX-111 in the U.S. and Asia, following a $110 million upfront payment, with RegenXBio set to receive up to $40 million in development milestones and $660 million in sales milestones.

However, this agreement excludes payments related to the gene therapy ABBV-RGX-314 and most development milestone payments from Nippon Shinyaku.

The anticipated payments from the new deal include those linked to RGX-121, a gene therapy awaiting FDA approval for Hunter syndrome, and RGX-111, which targets Hurler syndrome.

As a result of this agreement, RegenXBio expects its cash runway to extend into early 2027, having ended March 2025 with $272.7 million in cash.

This marks RegenXBio's second transaction of this kind, following a previous $200 million royalty sale of Zolgensma to HealthCare Royalty in 2020.

HealthCare Royalty is set to provide up to $250 million in exchange for expected royalty payments tied to three gene therapies, including Zolgensma, which is already approved for spinal muscular atrophy.