Cambridge firm, GSK in deal on RNA editing

The British pharmaceutical giant GSK, formerly GlaxoSmithKline, is partnering with Wave Life Sciences to develop up to nine genetic therapies with the Cambridge firm’s technology, the companies announced Tuesday. Wave will earn $120 million in cash and $50 million in an equity investment from GSK.

Wave’s stock was up about 30 percent on the news.

Wave is developing synthetic molecules of RNA or DNA that can silence harmful genes or help fix good ones. One application of those molecules is called RNA editing, a tactic that aims to change single letters of RNA code to fix mutations that cause genetic disease. The approach is billed as a temporary, and thus safer, alternative to gene editing, which permanently alters DNA.

Several biotech startups, including Boston-based Ascidian Therapeutics, Cambridge-based Korro Bio, and Waltham-based EdiGene, are developing their own RNA editing therapies. Pharma firms Eli Lilly and Roche formed RNA editing collaborations with others companies in the field last year.

The partnership with Wave grants GSK an exclusive license to Wave’s most advanced RNA editing therapy, which it is developing to treat the liver and lung disease alpha-1 antitrypsin deficiency. Wave could earn up to $525 million in potential milestone payments from GSK if that program is successful, and up to $2.8 billion if the pharma firm opts to develop an 8 additional genetic therapies with Wave.