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.
) recently entered into a worldwide collaboration and license
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
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
) 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
Sangamo currently carries a Zacks Rank #2 (Buy). Investors may
) at current levels, carrying Zacks Rank #1 (Strong Buy).
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