NEW YORK (AP) -- Shares of Isis Pharmaceuticals Inc. surged Monday after the drug developer announced that it is collaborating with Biogen Idec Inc. to develop therapies to treat neurological disorders.
THE SPARK: The six-year collaboration gives Biogen Idec exclusive rights to use Isis' antisense technology to develop therapies for neurological diseases. Antisense technology helps alter a gene's function, silencing a mutation or activating a gene to compensate for an underlying genetic defect.
Isis will be mostly responsible for drug discovery and early development of antisense therapies. Biogen will be responsible for the creation and development of small molecule treatments and biologics.
As part of the deal, Biogen will pay $100 million, with Isis eligible to receive milestone payments, license fees and royalty payments for all treatments developed during the collaboration.
This is the fourth collaboration between Isis and Biogen Idec in the past two years.
SHARE ACTION: Shares in Isis were up $3.19, or 11.4 percent, to $31.11 in afternoon trading. The shares have traded between $7.56 and $34.31 over the last year. The stock has more than doubled for the year to date.
Biogen's stock gained 86 cents to $226.04.