Sangamo and Biogen Tie Up - Analyst Blog

By Zacks Equity Research,

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A lot of pharmaceutical companies enter into collaboration and license agreements to obtain funding for research and development programs, to leverage technological knowhow as well as gain access to marketing expertise.

Sangamo BioSciences, Inc. ( SGMO ) recently entered into a worldwide collaboration and license agreement with Biogen Idec ( BIIB ).

The deal primarily focuses on the development of therapeutics for hemoglobinopathies which results from the abnormal structure or underproduction of hemoglobin.

The agreement will enable Biogen to leverage Sangamo's proprietary genome-editing technology platform to develop treatments targeting sickle cell disease and beta-thalassemia.

As per the agreement, Sangamo will be responsible for all research and development work through the first clinical trial in beta-thalassemia / the sickle-cell disease program. Both the companies will work together to submit an Investigational New Drug (IND) application for sickle-cell disease.

In addition, Sangamo retains an option to co-promote any licensed product to treat sickle-cell disease and beta-thalassemia in the U.S. while Biogen will be responsible for the clinical development and commercialization of products arising from the alliance on a worldwide basis.

Sangamo will earn a $20 million upfront payment. Biogen will fund all the internal and external research and development program related costs. Moreover, Sangamo will receive additional milestone payments of approximately $300 million.

Meanwhile, Sangamo expects to file an IND for hemophilia A and B with its collaboration partner Shire ( SHPG ) and for beta-thalassemia with Biogen in 2014. The company also plans to submit an IND for its HIV candidate in  in 2014. Further, Sangamo intends to file an IND for Hunginton's disease with Shire in 2015.

The collaboration agreements with Biogen and Shire bodes well for Sangamo and we look forward to updates on IND applications in 2014.

Sangamo currently carries a Zacks Rank #2 (Buy). Investors may also consider Actelion ( ALIOF ) at current levels, carrying Zacks Rank #1 (Strong Buy).


BIOGEN IDEC INC (BIIB): Free Stock Analysis Report

SANGAMO BIOSCI (SGMO): Free Stock Analysis Report

SHIRE PLC-ADR (SHPG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: ALIOF , BIIB , IND , SGMO , SHPG

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