AviadoBio Secures $413M Option Deal with Chinese Biotech for Rare Eye Disease Gene Therapy

AviadoBio, a London-based pharmaceutical company, has entered into a significant agreement with UgeneX Therapeutics, a Chinese biotech firm, for an investigational gene therapy targeting rare eye conditions. The deal, announced on October 10, 2025, could be worth up to $413 million and marks another instance of Western companies turning to China for novel therapies.

Deal Structure and Financial Terms

Under the terms of the agreement, AviadoBio will have the option to exclusively license UGX-202, a vision-restoring gene therapy developed by UgeneX. The deal includes:

• Up to $413 million in total value
• Upfront payment (amount undisclosed)
• Research and development milestones
• Sales milestones
• Royalties on net sales for UgeneX

AviadoBio's worldwide license would exclude countries in the Greater China area, aligning with similar arrangements in recent cross-border pharmaceutical deals.

UGX-202: A Novel Approach to Retinitis Pigmentosa

UGX-202 is an AAV-based gene therapy designed to treat retinitis pigmentosa (RP), a rare and progressive eye disease affecting approximately 1.5 million people worldwide. The therapy works by:

• Delivering a light-sensitive protein to retinal cells
• Reprogramming dormant cells in the retina to function like photoreceptors
• Potentially restoring vision regardless of the underlying genetic cause of RP

The gene therapy is delivered using an AAV viral vector, which has been optimized for "potential best-in-class performance," according to the companies. UGX-202 is currently undergoing clinical trials for RP and is set to enter clinical development for an undisclosed indication by the end of the year.

Industry Trends and Strategic Implications

This deal adds to a growing trend of Western pharmaceutical companies seeking innovative therapies from Chinese biotechs. Recent examples include:

• Zenas BioSciences' $2 billion licensing deal with InnoCare Pharma for autoimmune drugs
• Pfizer's $1.25 billion upfront payment to 3SBio for a PD-1/VEGF blocker
• AstraZeneca's $4.5 billion collaboration with Habour BioMed and $5.3 billion AI partnership with CSPC Pharmaceutical

For AviadoBio, the agreement expands its portfolio beyond neurodegenerative conditions to include retinal diseases. CEO Lisa Deschamps stated that the deal opens "a clear opportunity for next-generation approaches" in the field of optogenetics.

UgeneX President Wu Kai emphasized that the partnership represents a "significant milestone" for the company's global market entry and showcases the R&D capabilities of their pipeline.