Unraveling of Amicus spinout spells more trouble for gene therapy field

The abrupt dissolution of a blank-check merger on Thursday points to more trouble for the already deflated gene therapy field.

Amicus Therapeutics called off a planned spinout of its gene therapy division via a combination with a special purpose acquisition company, or SPAC. The $600 million deal, announced five months ago, would have created a new publicly traded gene therapy company called Caritas Therapeutics.

But on Thursday, Amicus and its SPAC partner terminated the merger citing “unfavorable market conditions” for new biotech financings, as well as an “increasingly challenging environment for stand-alone gene therapy companies.”

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