VectorY Therapeutics has signed an agreement securing an exclusive option to assess Shape Therapeutics’ SHP-DB1 adeno-associated virus (AAV) capsid for vectorised antibody payloads targeting three specific therapeutic areas.

As per the agreement, Shape will grant VectorY access to its capsid, with the latter taking on the responsibility for progressing the development and eventual commercialisation of any therapies that result from the partnership.

Should the evaluation prove successful, VectorY could secure an exclusive licence to the deep-brain penetrating AAV capsid for delivering vectorised antibodies against the specified targets.

Shape stands to obtain an initial payment and could potentially earn up to $1.2bn in combined fees and milestone payments.

The agreement stipulates that the company may receive milestone payments of up to $338m for rare disease programmes and as much as $503.5m for non-rare disease programmes, along with tiered royalties on the sales of any licensed products in the future.

VectorY said this partnership is expected to bolster the intravenous delivery of several of its pipeline programmes.

These include VTx-003, a dual-targeting vectorised antibody aimed at mutant huntingtin (mHTT) and transactive response DNA-binding protein 43 (TDP-43), and VTx-005, which targets phosphorylated tau, under study in Alzheimer's Disease.

According to VectorY, the AAV5 vector has been established as a clinically safe means of delivery, offering benefits such as reduced immunogenicity and hepatotoxicity compared to other serotypes like AAV9.

With Shape's AAV5-derived CNS capsid, SHP-DB1, VectorY aims to bring forth non-invasive vectorised antibody therapies to individuals suffering from neurodegenerative conditions.

VectorY Therapeutics CEO Jim Scibetta said: “We designated AAV5 as our capsid of choice from the company founding, and are deploying an AAV5 capsid in our lead asset, VTx-002, a TDP-43 motor neuron (non-deep brain) targeting vectorised antibody for ALS, for which we expect to file an investigational new drug application and clinical trial application by the end of 2025.

“This partnership strengthens our pipeline and expands our ability to leverage AAV5, a proven and safe viral vector delivery modality to bring transformative therapies to patients.” 

In 2023, VectorY raised €129m ($138m) during its Series A financing round, with the intention of progressing its vectorised antibody programmes that target neurodegenerative diseases.