Benzinga | Aug 24, 2021 09:02AM EDT

Vertex Inks Potential $1.2B Gene-Editing Pact With Arbor Biotechnologies

* Vertex Pharmaceuticals Inc (NASDAQ:VRTX) and Arbor Biotechnologies have announced a new collaboration to develop ex vivo engineered cell therapies.

* The new agreement between Arbor and Vertex builds upon the companies' first partnership established in 2018.

* Related: Intellia Shared Promising Biomarker Data From CRISPR/Cas9 Genome Editing Candidate.

* Under this new partnership, Vertex can use Arbor's proprietary CRISPR gene-editing technology to research and develop ex vivo engineered cell therapies.

* The technology will go toward Vertex's insulin-producing hypoimmune islet cells to treat Type 1 diabetes and next-generation sickle cell disease and beta-thalassemia treatments.

* The partnership includes up to seven potential programs.

* Under the agreement terms, Arbor will receive an upfront cash payment and is eligible to receive up to $1.2 billion in potential milestone payments.

* In addition, Vertex will pay tiered royalties on future net sales on any products that may result from this collaboration.

* Vertex will also make an investment in Arbor in the form of a convertible note.

* Price Action: VRTX shares are up 0.81% at $200 during the premarket session on the last check Tuesday.