Voyager Therapeutics shares soar 32% on news of deal with Novartis that includes up to $1.2 billion in milestone payments

Voyager Therapeutics Inc.’s stock
VYGR,
-3.18%
soared 32% early Tuesday, after the Lexington, Mass.-based biotech announced a new license agreement with Novartis Pharma AG, a unit of Novartis AG.
NVS,
+0.53%
The companies will collaborate in advancing potential gene therapies for Huntington’s disease and spinal muscular atrophy with Voyager giving Novartis license to access its Tracer capsids and other IP. Under the terms of the deal, Voyager will receive $100 million upfront, which includes $20 million for newly issued equity. Voyager will be eligible for up to $1.2 billion in preclinical, development, regulatory and sales milestones, as well as tiered royalties on global net sales of products that are developed using its technology. “Voyager will be responsible for preclinical advancement and Novartis will be responsible for all clinical development and commercialization for the HD program,” the company said in a statement. Voyager’s stock has gained 38% in the last 12 months, while the S&P 500 has gained 24%.