Biogen Idec, Sangamo in hematology deal
Sangamo BioSciences Inc. (NASDAQ:SGMO) jumped $5.23 (38%) to $18.88 on Thursday after announcing a deal with Biogen Idec Inc. (NASDAQ:BIIB) to use Sangamo's zinc finger nuclease technology to develop therapies to treat beta-thalassemia and sickle cell disease. Sangamo will receive $20 million up front and research funding. The company is also eligible for $293.8 million in milestones per product, plus tiered double-digit royalties.
Sangamo is responsible for all R&D activities for beta-thalassemia through the first Phase I trial for any product. For sickle cell disease, both companies are responsible for R&D activities through the submission of an IND application for each product. For both programs, Biogen Idec will be responsible for subsequent development and commercialization of products resulting from the deal. Sangamo retains an option to co-promote any product in the U.S. The company said the primary targets under the deal are B cell CLL/lymphoma 11A (zinc finger protein) (BCL11A) and beta-globin. ...