The signing of an important deal can often send stocks soaring, and that is what happened with SGMO stock on Friday. Late Thursday, it emerged that Sangamo Therapeutics Inc (NASDAQ:SGMO) had signed a big-ticket gene therapy deal with Biogen Inc (NASDAQ:BIIB).
According to the terms of the agreement, the two companies are going to initially focus on two gene therapy products from Sangamo.
According to the deal, the two will work on ST 501 and ST 502. The former is meant for treating tauopathies, including Alzheimer’s disease, while the latter is meant for the treatment of synucleinopathies, including Parkinson’s disease.
However, that is not all. The two have agreed to collaborate on nine more neurological products from Sangamo Therapeutics. It goes without saying that this is a significant deal for the company, and the rally in SGMO stock was understandable. The deal will, no doubt, result in a major financial boost for Sangamo.
The news fired up SGMO stock, which jumped by 26% to $8.38 in morning trade on Friday. It is likely that the stock is going to be in focus today, and investors may want to keep an eye on its movements.
Biogen is going to pay $350 million to Sangamo straightaway. Sangamo could then earn an additional $2.37 billion in milestone payments and royalties on sales. Sangamo Therapeutics boasts of an extensive pipeline of products, and at this point in time, its gene-editing product count stands at 17. That is substantially higher than many of its peers.
That being said, it is important to point out that out of those products, only five are currently at a Phase 1/2 clinical trial.
SGMO stock is down by about 30% since early December.
What do you think about the partnership between Sangamo Therapeutics and Biogen?
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