Two Big Pharma Companies Bow Out Of Neurology Drug Partnerships With Sangamo
Two big-name partners have walked away from partnerships with Sangamo Therapeutics Inc (NASDAQ: SGMO) over a few days.
On Friday, the company filed an SEC document, Novartis AG (NYSE: NVS) terminated the Collaboration and License Agreement dated July 27, 2020, effective June 11, 2023.
The Novartis and Sangamo were engaged in programs to research gene regulation therapies to treat three neurodevelopment disorders.
Novartis has indicated to Sangamo that the termination relates to a recent strategic review.
Biogen Inc (NASDAQ: BIIB) also terminated the agreement dated February 26, 2020. Biogen and Sangamo were engaged in programs to research and develop gene regulation therapies to treat neurological diseases.
“For three of the four product candidates, Sangamo had achieved predetermined proof of mechanism objectives and had advanced research activities to late-stage preclinical testing with lead candidates,” the company wrote.
Sangamo says it will investigate alternative options to push those programs forward, “including potential development internally or with a collaboration partner, dependent on the outcome of a broader strategic review of its preclinical pipeline of therapies to treat patients suffering from central nervous system (“CNS”) disorders.”
Biogen paid Sangamo a $125 million upfront license fee. Under the Novartis Agreement, Novartis paid Sangamo a $75 million upfront license fee, and Sangamo was eligible to earn up to $720 million in milestone payments from Novartis.
Price Action: SGMO shares are down 3.23% at $1.95 on the last check Monday.
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