Industry-Sponsored Research Week
University-Industry Engagement Advisor

CRISPR paying off for Broad Institute as spinout Editas Medicine ponies up $125M in research funding

By David Schwartz
Published: June 12th, 2018

CRISPR-based therapeutics developer Editas Medicine is returning in a big way to the institution it spun out of. The company, formed in part from research done at the Broad Institute, has agreed to provide up to $125 million in research funding to the Broad in exchange for the exclusive right to be the first to negotiate license agreements for genome-editing inventions that arise from the sponsored research.

In a filing with the U.S. Securities and Exchange Commission, Editas says it will make two upfront payments of $5 million and $7.5 million. Additional payments will be due in the event Editas’ market capitalization reaches specific thresholds ranging from a mid-nine-digit dollar amount to a low eleven-digit dollar amount, or if the firm is sold for a price in a similar range. Editas’ market cap is currently around $1.7 billion.

Funding tied to Editas’ market cap is payable in cash or interest-bearing promissory notes, and are convertible into company stock under certain conditions. If there is a change in control of Editas, the funding is payable in cash only.

In the filing, Editas noted that it is only required to make additional payments if it or an affiliate is researching, developing, or commercializing products involving technology exclusively licensed from or controlled by Broad.

Source: GenomeWeb

Posted under: University-Industry Engagement Week

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