AbbVie exercises first $40M option to advance Capsida-partnered CNS gene therapy

Gene therapy firm Capsida Biotherapeutics is advancing the first of its AbbVie-partnered neurodegenerative disease therapies after the Big Pharma exercised a $40 million option for the program.

In addition to the $40 million licensing payment, Capsida can receive development and commercial milestones along with royalties on future sales, the biotech said in a Jan. 7 release.

AbbVie decided to opt-in to the program based on data showing that Capsida’s adeno-associated virus (AAV) capsids were able to deliver AbbVie’s gene therapy to the brains of primates, according to the release.

“AbbVie's option exercise demonstrates the potential high performance of Capsida's IV-delivered AAV technology,” Capsida CEO Peter Anastasiou said in the release. “In addition, we are looking forward to advancing two of our wholly owned CNS programs into clinical trials in the first half of 2025."’

The collaboration between AbbVie and Capsida began in 2021 when Capsida launched with a $50 million series A and $90 million from AbbVie to develop viral capsids for delivering genetic medicines targeting three CNS diseases.

AbbVie doubled down on the biotech in January 2023, signing a deal potentially worth more than $595 million to pursue three eye disease targets using Capsida’s technology. That deal came just a month after Capsida paired up with another pharma giant, Eli Lilly, for up to $685 million.

Tougher times followed for Capsida, with the viral vector specialist laying off staff—reportedly up to 25% of the workforce—in July 2023.