Sangamo Therapeutics, a leading biotechnology company, announced on Monday a research evaluation and option agreement with Prevail Therapeutics, a subsidiary of Eli Lilly and Company.
Evaluating Proprietary Sangamo Adeno-Associated Virus Capsids
As part of the global agreement, Prevail will receive the rights to conduct in vitro and in vivo studies to evaluate specific proprietary Sangamo adeno-associated virus capsids. In return, Sangamo will receive an upfront payment.
Exclusive License for Multiple Neurological Targets
In addition to the evaluation rights, Prevail also has the option to secure an exclusive license for the use of the capsids across multiple undisclosed neurological targets.
Potential Financial Benefits for Sangamo
Should Prevail choose to exercise the option for all targets and successfully gain approval for a Prevail product utilizing the licensed capsids in both the United States and Europe, Sangamo stands to benefit significantly. This includes:
- Up to $415 million in exercise fees and developmental milestone payments
- Up to $775 million in commercial milestone payments
- Tiered royalties based on net sales of Prevail products
Prevail’s Responsibility for Development and Commercialization
Under the agreement, Prevail will take the lead in all future development, manufacturing, and commercialization efforts related to the products.
Positive Market Reaction
News of the agreement has had a positive impact on Sangamo Therapeutics’ market performance. As of premarket trading on Monday, the company’s shares rose by 12% to $1.44.