Sangamo inks $20M gene therapy deal with Astellas; shares rally

RICHMOND, Calif. - Sangamo Therapeutics, Inc. (NASDAQ:SGMO) announced a licensing agreement with Astellas Pharma Inc. (TSE:TYO:4503 ) that sent its shares soaring 23%.

Under the deal, Sangamo will receive a $20 million upfront payment for granting Astellas an exclusive worldwide license to use its STAC-BBB capsid technology for gene therapy applications in neurological diseases.

The STAC-BBB capsid, developed by Sangamo, is designed to penetrate the blood-brain barrier and deliver gene therapies directly to the central nervous system. This technology aims to address the significant challenges associated with treating neurological disorders.

Sangamo's CEO Sandy Macrae expressed confidence in the STAC-BBB capsid's potential to transform the delivery of therapies to the brain. He noted that the agreement with Astellas reflects the industry's recognition of the capsid's capabilities and Sangamo's commitment to partnerships that explore its utility.

According to Astellas' Chief Strategy Officer Adam Pearson (LON:PSON ), the partnership with Sangamo aligns with Astellas' strategy to build a comprehensive gene therapy pipeline and enhance its ability to develop treatments for genetic neurological conditions.

Astellas will assume responsibility for the research, development, and commercialization of any gene therapy products resulting from the use of the STAC-BBB capsid. In addition to the upfront fee, Sangamo may receive up to $1.3 billion in potential milestone payments for additional licensed targets and tiered royalties on net sales of products developed through the collaboration.

The licensing agreement is a strategic move for both companies, with Sangamo contributing its proprietary technology and Astellas expanding its portfolio in the gene therapy space.

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Source: Investing.com