(Adds deal details, analyst comments; updates share movement)
Jan 9 Sangamo Biosciences Inc said it
would collaborate with Biogen Idec Inc to develop
treatments for a group of inherited blood disorders in a deal
for up to $320 million.
Sangamo shares jumped as much as 30 percent to a six-year
high of $17.73 on the Nasdaq on Thursday morning.
Biogen will use Sangamo's genome-editing technology to
develop drugs targeting sickle cell disease and
It will provide Sangamo $20 million upfront and reimburse
costs related to research and development.
Sangamo will also be eligible for milestone payments of
about $300 million, as well as double digit royalties on product
The upfront payment and the terms of the milestone payments
and the double digit royalties were pretty high, Wedbush analyst
Liana Moussatos said.
"The deal terms are very lucrative for a pre-clinical
platform. So I think Biogen must have been impressed with the
pre-clinical data that Sangamo presented last month."
Sangamo presented the data last month at the annual meeting
of the American Society of Hematology.
The company will be responsible for research and development
for the first proof-of-concept study for beta-thalassemia,
according to Thursday's deal.
Beta-thalassemia impairs the body's ability to produce
hemoglobin, the protein in red blood cells (RBC).
Sickle cell disease changes the shape RBCs, tending to block
Moussatos said Sangamo also had a promising HIV program,
with a patient to stay with undetectable viral load for six
"That's another viable treatment and I won't be surprised if
they announce another partnership for that," Moussatos said.
(Reporting by Shailesh Kuber; Editing by Joyjeet Das)