Near-term prospects for most industries may have deteriorated, but we could witness a step-up in interest for biotech stocks down the line. One of the strongest risers in trading on 25 March was Silence Therapeutics (SLN), a specialist in RNA (ribonucleic acid) therapies - a clinical approach which aims to stifle (or ‘silence’) the production of disease-causing proteins in the body through inhibiting genes in the human genome.
Shares were up by around a fifth after it was announced that the company has signed a marquee deal with AstraZeneca (AZN) worth $80m (£67.2m) in upfront investment, in addition to a further $400m in milestone payments and royalties for each disease area targeted – the initial focus is on liver, heart and lung diseases. Tiered royalties on net sales will range from “high single digit to low double digit”. The companies anticipate initiating work on five targets within the first three years of the collaboration.
Separately, Silence’s board announced that it decided to accelerate development of SLN360, a potential treatment for cardiovascular disease.
