Japan drug maker Otsuka (OTCMKTS: OTSKY) and US firm Shape Therapeutics have announced a strategic partnership aimed at developing a range of ophthalmology gene therapies. The collaboration will leverage Shape’s machine learning-backed capsid discovery platform to create viral vectors with high target precision, enabling lower doses, and its transgene engineering technology to optimize the expression levels of the payloads.
Financial Terms and Potential Expansion
Under the terms of the agreement, Otsuka will make an upfront payment, milestone payments, and potential royalties totaling up to USD 1.5 billion. The deal also grants Otsuka the right to expand the partnership to additional targets and therapeutic areas, signaling a significant commitment to advancing ophthalmic treatments.
Otsuka’s Strategic Interest in Ophthalmology
Otsuka’s focus on the ophthalmology field follows setbacks in its neurology pipeline, including Phase III failures for ulotaront, a potential treatment for schizophrenia, and brexpiprazole, a candidate for post-traumatic stress disorder (PTSD). This partnership with Shape Therapeutics represents a strategic move to diversify its portfolio and explore new therapeutic avenues in ophthalmology.-Fineline Info & Tech
