Benzinga | Apr 22, 2021 09:06AM EDT

Vertex Pharma Inks Research, Licensing Agreement With Obsidian Therapeutics For Controllable Genetic Therapies

* Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) and Privately-held Obsidian Therapeutics have entered into a research collaboration and licensing agreement to discover novel therapies that regulate gene editing.

* The collaboration leverages Obsidian's cytoDRiVE platform technology to discover gene-editing medicines whose therapeutic activity can be precisely controlled using small molecules.

* Under the terms of the agreement, Obsidian grants Vertex the exclusive option to license worldwide rights to candidates discovered and developed under the collaboration. Vertex will be responsible for further preclinical and clinical development and commercialization following Vertex's exercise of its options.

* Vertex will pay Obsidian up to $75 million in upfront payments and research milestones, including an equity investment in Obsidian.

* Obsidian is eligible to receive up to $1.3 billion in potential milestone payments for up to five potential programs.

* Price Action: VRTX shares closed at $219.76 on Wednesday.