Sangamo Therapeutics (SGMO) has delivered another impressive “Neuro” partnership with Novartis (NVS) on the heels of their monster deal with Biogen (BIIB) earlier in the year, explains John McCamant, editor of The Medical Technology Stock Letter — and a participant in MoneyShow's Virtual Expo on August 18-20. Register for free here.
Novartis is a first class neuro partner and their commitment to SGMO’s ZFP technology provides further validation. The companies will develop and commercialize gene regulation therapies to address three neurodevelopmental targets, in autism spectrum disorder (ASD) and other neurodevelopmental disorders.
The collaboration will leverage SGMO’s propriety genome regulation technology, zinc finger protein transcription factors (ZFP-TFs), with the aim to upregulate/activate the expression of key genes involved in neurodevelopmental disorders.
Under the collaboration agreement, Novartis will pay SGMO $75 million upfront and up to $720 million in milestone payments, including up to $420 million in development milestones and up to $300 million in commercial milestones.
SGMO is also eligible to receive tiered high single-digit to sub-teen double-digit royalties on potential net commercial sales of products arising from the collaboration.
For a three-year collaboration period, Novartis has exclusive rights to ZFP-TFs targeted to three undisclosed genes which are associated with neuro-developmental disorders, including ASD and intellectual disability.
Novartis also has the option to license SGMO’s proprietary AAVs. Once again, these are excellent terms for assets that are in the preclinical/conceptual development phase.
SGMO continues to deliver impressive partnerships that provide access to its cutting edge proprietary ZFP technology platform. Novartis is yet another excellent partner and — combined with their Biogen partnership — illustrates management’s ability to create value from their extremely broad pipeline that is too vast for SGMO to develop on their own.
At the core of all the SGMO deals is the company’s rock solid intellectually property which allows them to completely dominate the ZFP technology field.
