Vor Biopharma's RemeGen Deal Paves Way For Multi-Billion Dollar Autoimmune Market

H.C. Wainwright upgraded Vor Biopharma Inc. (NASDAQ:VOR), highlighting the company’s “rebirth” following the in-licensing of telitacicept.

On Thursday, the company announced a strategic licensing agreement and a major capital raise to support its push into autoimmune therapies.

Vor Bio signed an exclusive global licensing deal with RemeGen Co., Ltd., giving it rights outside Greater China to develop and commercialize telitacicept, a dual-action fusion protein already approved in China for multiple autoimmune disorders.

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Under the agreement, Vor will pay $125 million upfront, $45 million in cash, $80 million in stock warrants, and potential milestone payments exceeding $4 billion and tiered royalties.

The company also announced that Jean-Paul Kress has stepped in as CEO and Chairman, replacing Dr. Robert Ang, who will stay on as a strategic advisor through October.

Commenting on the development, HC Wainwright stated, “Overall, we are encouraged by the quick resurrection of the company by the board and the management as this transaction brings a de-risked asset that could be commercialized in the US starting mid-2028.”

Analyst Swayampakula Ramakanth upgraded Vor Biopharma from Neutral to Buy on Monday with a price forecast of $3.

Ramakanth highlights the significant market opportunity for telitacicept in generalized myasthenia gravis (gMG). Based on a 2018 survey of Medicare data, an estimated 82,700 people in the U.S. had gMG in 2021, with approximately 75% receiving treatment.

The analyst projects that if telitacicept is priced at $225,000 per patient yearly and captures 15% of the U.S. market, peak annual sales could reach $1.8 billion.

Furthermore, the analyst says, should the drug successfully launch in the EU and Japan, with commercial partners managing sales outside the U.S. and achieving a 10% market share, it could generate an additional $2.7 billion in combined sales and royalties.

While RemeGen is conducting a Phase 3 trial of telitacicept for lupus (SLE) in the U.S. and EU, the analyst notes that Vor Biopharma currently lacks a defined strategy for marketing the drug for SLE. Consequently, any potential sales from this indication are not factored into Vor’s current projections.

Price Action: VOR stock is up 49.1% at $1.58 at the last check on Monday.

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