BIIB Biogen Inc

   By Stephen Nakrosis 
 

Shares of Sangamo Therapeutics Inc. jumped in Thursday's after-hours market following news the company will collaborate with Biogen Inc. to develop gene regulation therapies targeting a number of neurological diseases, including Alzheimer's and Parkinson's.

At 6:21 p.m. EST, Sangamo shares had gained 39.53% to$9.30 per share. Volume in the after-hours market topped 688,000 shares. The company's stock finished Thursday's regular trading session with a 3.27% loss, closing at $6.66.

The companies said they would collaborate on developing gene regulation therapies, using "Sangamo's proprietary zinc finger protein technology." The treatments would target neurological diseases such as Alzheimer's and Parkinson's.

The companies will focus on "a third undisclosed neuromuscular disease target, and up to nine additional undisclosed neurological disease targets," they said.

Under the terms of the deal, Biogen will make an upfront payment of $350 million, consisting of a $125 million license fee payment and $225 million from the sale of new Sangamo stock. Sangamo is eligible to receive as much as $2.37 billion in potential milestones, along with royalties on potential net commercial sales, the companies said.

Shares of Biogen dipped 0.65% at 6:27 p.m. EST to $308.07. The stock finished 5.3% lower in Thursday's regular trading session, closing at $310.08.

-- Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

February 27, 2020 18:52 ET (23:52 GMT)

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