05:31 AM EST, 01/14/2025 (MT Newswires) -- REGENXBIO ( RGNX ) and Nippon Shinyaku said Tuesday that they have formed a partnership for the development and commercialization of RGX-121 as a potential treatment for Hunter syndrome and RGX-111 for Hurler syndrome.

Under the terms of the deal, REGENXBIO ( RGNX ) will receive $110 million at closing and up to $700 million in additional payments if certain milestones are achieved, the companies said.

The payments include $40 million in potential development and regulatory milestones and $660 million in potential sales milestones, the companies said.

Additionally, REGENXBIO ( RGNX ) will also receive double-digit royalties on net sales in the US and Asia, the companies said.

Nippon Shinyaku will commercialize both products in the US and Asia while future clinical development of RGX-121 and RGX-111 will be led by REGENXBIO ( RGNX ), the companies said.

Both Hunter's and Hurler's disease are rare genetic disorders leading to skeletal deformities and mental stagnation.

Shares of REGENXBIO ( RGNX ) rose more than 24% in Tuesday's premarket activity.

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