Isis Pharmaceuticals, Inc.
) will receive a $10 million milestone payment from
) under their Jun 2012 agreement.
Isis Pharma said that ISIS-DMPKRx has been selected for
further development for the treatment of myotonic dystrophy type
I (DM1). The company expects to move the candidate into human
studies next year.
As per the terms of the exclusive, worldwide option and
collaboration agreement, Biogen had made an upfront payment of
$12 million to Isis Pharma. Besides this, Isis Pharma could
receive up to $59 million on the achievement of development-based
milestones. This includes the $10 million milestone payment that
was recently achieved. Biogen has the option to in-license the
candidate from Isis Pharma any time up to the completion of phase
II development. If Biogen decides to exercise its option, it will
be responsible for the worldwide development, approval and
commercialization of the candidate.
Biogen could end up paying an additional $200 million as
license fee and on the achievement of regulatory based
milestones. Besides this, Biogen will pay double-digit royalties
on sales of ISIS-DMPKRx once it is commercialized.
We note that Isis Pharma has four deals with Biogen. The
companies first collaborated in early 2012 for the development of
antisense drugs to treat spinal muscular atrophy. This was
followed by the Jun 2012 deal for the development of antisense
drugs to treat DM1. The third deal, also signed in 2012, was for
the discovery and development of antisense drugs against three
novel targets for neurological disorders. Finally, in Sep 2013,
the companies teamed up again for the use of Isis Pharma's
antisense technology for the development of treatments for
Isis Pharma currently carries a Zacks Rank #1 (Strong Buy). We
view Kynamro's Jan 2013 approval in the U.S. as a major milestone
for the company. We are also pleased with Isis Pharma's progress
with its pipeline. We are positive on the company's
collaborations which not only validate its antisense technology
but also provide the company with funds in the form of upfront,
milestone and other payments.
Other companies that look attractive include Zacks Rank #1
AMAG Pharmaceuticals, Inc.
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