MeiraGTx Holdings plc (NASDAQ:MGTX) shares are down Thursday following the company’s announcement of an asset purchase agreement with Johnson & Johnson (NYSE:JNJ) to reacquire bota-vec, a treatment for X-linked retinitis pigmentosa (XLRP).
XLRP is a severe, progressive genetic eye disease causing early-onset night blindness and peripheral vision loss, leading to legal blindness by age 40–45.
MeiraGTx is a clinical-stage genetic medicines company with a pipeline of four late-stage clinical programs.
MeiraGTx Deal Structure And Regulatory Timeline In Focus
The news has generated optimism among investors as the company aims to expedite regulatory filings, which could lead to a significant market opportunity for this therapy.
The company will pay Johnson & Johnson a $25 million upfront cash payment and a one-time regulatory milestone tied to U.S. approval and sales performance of bota-vec starting mid-2029.
In reacquiring bota-vec, MeiraGTx intends to expeditiously file for approval in the U.S. and EU with the aim of a potential launch in 2027.
With the data from the AQUAx 2 pivotal study of AAV-hAQP1 for grade 2/3 radiation-induced xerostomia expected in the second quarter of 2027, the company intends to become a commercial-stage company with two potential products launching over the next 2 years into concentrated markets.
Capital Raise Extends Funding Runway
On Thursday, MeiraGTx priced its offering of 11.11 million shares at $9.00 per share, with gross proceeds of approximately $100 million.
The company believes that the net proceeds from this offering, together with its existing cash and cash equivalents, will be sufficient to enable it to fund its operating expenses and capital expenditure requirements into the second half of 2028.
Xerostomia Data Shows Durable Benefit
MeiraGTx also shared three-year data from the completed Phase 1 AQUAx study of AAV-hAQP1 for grade 2/3 late radiation-induced xerostomia.
Xerostomia, or chronic dry mouth, is the subjective sensation of dryness resulting from reduced saliva production. It is primarily caused by medication side effects, radiation therapy, and autoimmune conditions.
The data showed clinically meaningful improvements in xerostomia symptoms maintained out to 3 years post-treatment with AAV-hAQP1 for both bilateral and unilateral cohorts.
Increases in Unstimulated Whole Saliva Flow Rate (UWSFR) were maintained out to 3 years.
AAV-hAQP1 was safe and well-tolerated at each dose tested.
Prior Eli Lilly Deal Adds To Pipeline Value
In November 2025, MeiraGTx granted Eli Lilly and Co. (NYSE:LLY) worldwide exclusive rights to its AAV-AIPL1 program for Leber congenital amaurosis 4, an inherited eye disease that causes significant vision loss from birth.
MeiraGTx received an upfront payment of $75 million and will be eligible to receive over $400 million in total milestone payments. The company is also eligible to receive tiered royalties on licensed products.
MGTX Stock Price Activity: MeiraGTx Holdings shares were down more than 15.8% at $9.47 on Thursday, according to Benzinga Pro data.
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