4DMT secures $420M Otsuka deal to fast-track retinal gene therapy

4D Molecular Therapeutics struck a licensing deal with Otsuka Pharmaceutical worth up to $420 million, including $85 million upfront, to develop and commercialize its retinal gene therapy, 4D-150, across Asia-Pacific.

Why it matters: The cash infusion fuels the phase 3 trial of 4D-150 for wet age-related macular degeneration (AMD) and supports expansion into diabetic macular edema (DME), two major causes of vision loss globally. This could reduce the need for frequent injections and improve patient outcomes.

Backstory: 4D-150 delivers a sustained dose of anti-VEGF therapy encoding aflibercept (marketed by Regeneron as Eylea), aiming to replace frequent eye injections. A phase 2 trial showed a 78% drop in supplemental injections versus standard Eylea treatment.

Big picture: The retinal gene therapy space is heating up. While J&J hit a setback with its phase 3 trial, companies like Opus Genetics, MeiraGTx, and Beacon Therapeutics are seeing clinical success. SpliceBio raised $135M for its Stargardt program and Eli Lilly acquired Adverum. The Asia-Pacific market, with high unmet needs, offers a major growth opportunity, especially with a local partner like Otsuka.

What’s next?: 4DMT will retain global development and ex-APAC commercial rights while Otsuka will co-fund global development with $50M over the next three years.