By Chris Wack

Homology Medicines Inc. said Monday that Pfizer Inc. has agreed to make a $60 million equity investment in Homology.

Pfizer has agreed to purchase 5 million of Homology's common shares at a price of $12 each as part of the Pfizer Breakthrough Growth Initiative, which was announced earlier this year. The purchase by Pfizer is expected to close on or around Tuesday.

In connection with the investment, Dr. Seng Cheng, senior vice president and chief scientific officer of Pfizer's Rare Disease Research Unit, will join Homology's Scientific Advisory Board to participate in matters related to the development of the company's phenylketonuria product candidates: HMI-102 gene therapy candidate for adults with PKU and HMI-103 gene editing candidate for pediatric patients with PKU. Homology has granted Pfizer a right of first refusal on future transactions involving these programs.

Phenylketonuria, or PKU, is an inherited metabolic disorder that can cause intellectual disability and other serious health issues. Currently, there are no treatment options for PKU that target the underlying genetic cause of the disease, Homology said. The company, citing the National PKU Alliance, said the disease affects nearly 16,500 people in the U.S. and 50,000 people worldwide.

Homology said it intends to use the net proceeds of the offering to help fund its PKU clinical trials, as well as its central nervous system programs.

Based on current projections, together with the anticipated proceeds of $60 million from the Pfizer equity investment, Homology expects cash resources to fund operations into the third quarter of 2022.

Homology shares were up 23% to $11.69 in premarket trading Monday.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

11-09-20 0846ET