Isis Pharmaceuticals, Inc.
) have teamed up again. This time round the companies are working
on the development and commercialization of an antisense drug for
the treatment of myotonic dystrophy type 1 (DM1) or Steinert
Terms of the Deal
As per the terms of the exclusive, worldwide option and
collaboration agreement, Biogen will make a $12 million upfront
payment to Isis Pharma. Isis Pharma will work on the discovery of a
lead antisense candidate for the treatment of DM1.
Besides this, Isis could receive up to $59 million on the
achievement of development-based milestones. 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 the drug.
This is the second collaboration between Biogen and Isis Pharma.
These deals not only validate Isis Pharma's antisense technology
but also provide the company with funds in the form of upfront,
milestone and other payments.
While this deal is a positive for Isis Pharma, we expect
investor focus to remain on the regulatory progress of lead
candidate, Kynamro. Kynamro is currently under US Food and Drug
Administration (FDA) review. Isis Pharma and partner, Genzyme, a
) company, are looking to get Kynamro approved for the treatment of
patients with homozygous familial hypercholesterolemia (HoFH). A
response from the FDA should be out by January 29, 2013.
We currently have a Neutral recommendation on Isis Pharma, which
carries a Zacks #3 Rank (short-term 'Hold' rating).
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