Sangamo Therapeutics Inks $1.95B Deal With Genentech to Target Alzheimer’s, SGMO Stock Pops 29%
Genentech, a subsidiary of the Roche Group, marks a strategic move for Roche, which has long sought effective treatments for Alzheimer's despite previous setbacks.
In a significant advancement for the field of genomic medicine, Sangamo Therapeutics has entered a landmark license agreement with Genentech, part of the Roche Group (OTCQX: RHHBY). The partnership focuses on developing innovative treatments for neurodegenerative diseases, leveraging Sangamo Therapeutics’ (NASDAQ: SMGO) cutting-edge zinc finger technology and proprietary adeno-associated virus (AAV) capsid, STAC-BBB.
The agreement, announced Tuesday, could yield Sangamo up to $1.95 billion, including $50 million in near-term upfront license fees and milestone payments.
Sangamo- Genentech Alzheimer’s Deal
Under the terms of the deal, Sangamo grants Genentech exclusive rights to its zinc finger repressors, particularly targeting the tau gene implicated in Alzheimer’s disease. This gene has been a focal point in Alzheimer’s research due to its role in producing tau protein, a key factor in the progression of the disease. Additionally, the agreement includes an undisclosed second neurology target, broadening the scope of potential therapeutic applications.
Genentech, a leader in neurological research, will assume responsibility for the clinical development, regulatory processes, manufacturing, and global commercialization of the treatments derived from this collaboration. This partnership marks a strategic move for Roche, which has long sought effective treatments for Alzheimer’s despite previous setbacks.
This partnership also includes the use of Sangamo’s STAC-BBB, an AAV capsid designed to cross the blood-brain barrier effectively—a major challenge in treating brain disorders. The capsid has shown promising results in nonhuman primates, making it a key component in delivering therapeutic agents to the central nervous system.
Financial Structure and Potential Impact
The financial structure of the deal reflects its potential scale and impact. Sangamo stands to receive up to $1.9 billion in development and commercial milestone payments, depending on the success of the products developed under the agreement. Additionally, the company will earn tiered royalties on the net sales of these products.
Boris L. Zaïtra, Head of Roche Corporate Business Development, highlighted the strategic importance of the partnership, stating:
“Through groundbreaking research and partnerships with companies such as Sangamo, we are committed to pursuing important breakthroughs in both early diagnosis and treatment. Our relentless pursuit of scientific innovation is taking us into areas of enormous unmet medical need and progress in treating diseases of the brain and nervous system.”
Future Prospects and Industry Implications
This collaboration not only promises to advance the treatment of Alzheimer’s and other neurodegenerative diseases but also underscores the growing potential of genomic medicine. For Sangamo, the deal provides a crucial infusion of capital and the opportunity to further develop its innovative technologies. As the field of neurological research continues to evolve, partnerships like this one are essential in pushing the boundaries of what is possible in medicine.
Shares of Sangamo Therapeutics stock last traded at $0.99, up 28.95% today. YTD, SGMO stock is up 76.82%. All time, SGMO stock is down 93.40%.
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