Benzinga | Sep 13, 2021 10:57AM EDT

Why Regenxbio Shares Are Trading Higher Today

Regenxbio Inc (NASDAQ:RGNX) is trading significantly higher Monday after the company, and AbbVie Inc (NYSE:ABBV), announced an eye care collaboration.

The companies will develop and commercialize RGX-314, an investigational gene therapy for wet age-related macular degeneration, diabetic retinopathy and other chronic retinal diseases.

Regenxbio is responsible for completion of the ongoing trials of RGX-314. AbbVie will lead the clinical development and commercialization.

AbbVie will pay Regenxbio a $370 million upfront payment with the potential for the company to receive up to $1.38 billion in additional development, regulatory and commercial milestones. The transaction is expected to close by the end of the year.

"We expect to leverage AbbVie's global developmental and commercial infrastructure within eye care with our expertise in AAV gene therapy clinical development and deep in-house knowledge of manufacturing and production to continue the development of RGX-314," said Kenneth Mills, president and CEO of Regenxbio.

Regenxbio is a biotechnology company focused on the development and commercialization of recombinant adeno-associated virus gene therapy to correct an underlying genetic defect.

RGNX Price Action: Rgenxbio has traded as high as $50.26 and as low as $25.92 over a 52-week period.

The stock was up 24.80% at $41.29 at time of publication.

Photo: Engin Akyurt from Pixabay.