Sangamo Shares Up Nearly 40% After News of Biogen Collaboration
February 27 2020 - 7:07PM
Dow Jones News
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)
Copyright (c) 2020 Dow Jones & Company, Inc.
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