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Investing.com -- Shares of Sangamo Therapeutics Inc (NASDAQ:SGMO) surged 30.2% following the announcement of a significant licensing agreement with pharmaceutical giant Eli Lilly and Company (NYSE:LLY). The deal centers on Sangamo’s proprietary STAC-BBB neurotropic adeno-associated virus (AAV) capsid, designed to penetrate the blood-brain barrier and deliver genomic medicines for central nervous system diseases.
The agreement grants Lilly an exclusive worldwide license to use the STAC-BBB capsid for one initial target, with an option to add up to four additional targets, subject to further fees. This collaboration marks the third such agreement for Sangamo since the unveiling of STAC-BBB in March 2024, reflecting the industry’s growing interest in the company’s delivery technology.
Under the terms of the partnership, Sangamo will be responsible for completing a technology transfer of the STAC-BBB capsid, while Lilly will handle all subsequent research, development, regulatory interactions, manufacturing, and commercialization activities for any gene therapy products that result. Sangamo stands to receive an $18 million upfront payment from Lilly and could potentially earn up to $1.4 billion in additional fees and milestone payments for the five potential neurology disease targets, along with tiered royalties on net sales of the products.
Sangamo’s CEO, Sandy Macrae, expressed confidence in the STAC-BBB capsid’s ability to address the challenges of delivering treatments to the central nervous system. Macrae highlighted the significance of sharing this technology with Lilly to advance potential therapies for neurological diseases with considerable unmet medical needs.
This strategic partnership with Lilly underscores Sangamo’s commitment to innovation in genomic medicine and its potential to generate substantial future revenue through licensing fees, milestone payments, and sales royalties. Investors have responded positively to the news, driving up Sangamo’s stock price in today’s trading session.
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