Regenxbio (NSDQ:RGNX) has closed a license agreement with AbbVie (NYSE:ABBV) to develop RGX-314, a vascular endothelial growth factor inhibitor.
The drug has been the focus of Phase 2 and Phase 3 trials exploring its potential in wet age-related macular degeneration (AMD) and diabetic retinopathy.
AbbVie will make an upfront payment to Regenxbio of $370 million and could pay an additional $1.38 billion if the drug candidate meets proposed development, regulatory and commercial milestones.
In the agreement, Regenxbio will focus on overseeing the completion of ongoing trials related to the RGX-314. The two companies will partner and split the cost of additional studies related to the drug candidate.
The two companies intend to perform an additional pivotal trial testing subretinal delivery to treat wet AMD and future trials.
AbbVie plans on leading clinical development and commercialization of the drug.
In October, Regenxbio released positive initial data from an ongoing Phase 2 trial focused on RGX-314. That study is testing the drug candidate’s potential to treat diabetic retinopathy without center-involved diabetic macular edema.