Benzinga | Jul 1, 2021 05:48AM EDT

Apellis, Beam Ink $75M Deal To Test Base Gene Editing Against Complement Disorders

* Beam Therapeutics Inc (NASDAQ:BEAM) joins forces with Apellis Pharmaceuticals Inc (NASDAQ:APLS) to create new gene-editing treatments for complement-driven diseases.

* The partnership will leverage Beam's base-editing technology to discover new treatments against various targets in the complement system.

* Under the five-year collaboration, Apellis will pay Beam $75 million cash, including $50 million upfront and $25 million one year down the line, along with unspecified milestones in exchange for preclinical work on six different programs.

* The programs will aim to complement protein C3 and other targets in the complement pathway to treat eye, liver, and brain diseases.

* Apellis will have exclusive rights to license each of the six programs and assume responsibility for subsequent development. However, Beam has the right to go 50-50 developing and commercializing one of them in the U.S.

* The deal comes days after Intellia Therapeutics Inc (NASDAQ:NTLA) unveiled first-in-human gene editing results showing that genes could be edited successfully inside the human body.

* The news sent shares of other gene-editing companies flying, including Beam.

* Apellis is developing its lead C3 inhibitor pegcetacoplan for several diseases, snagging its first FDA nod for paroxysmal nocturnal hemoglobinuria in May.

* Price Action: BEAM and APLS shares closed at $128.71 and $63.2 on Wednesday.