Sangamo Partners with Genentech for $1.9 Billion Neurology-Focused Deal Using Zinc Finger Technology

Partnership Details:
Sangamo Therapeutics has entered into a neurology-focused partnership with Genentech, a unit of Roche, worth nearly $2 billion. The deal involves Sangamo's zinc finger repressor technology.

Financial Terms:
The agreement includes $50 million in upfront licensing fees and near-term milestone payments, with potential additional payments of up to $1.9 billion if development and commercial goals are met. Sangamo will also receive tiered royalties on net sales of any products stemming from the collaboration.

Technological Focus:
The partnership focuses on using Sangamo's zinc finger molecules to repress the tau gene, a protein associated with Alzheimer's disease. Additionally, the deal includes a microscopic shuttle (adeno-associated virus capsid) that can cross the blood-brain barrier, a significant challenge in brain drug development.

Responsibilities:
Sangamo will be responsible for some preclinical activities, while Genentech will lead clinical development, regulatory interactions, manufacturing, and global commercialization.

Impact on Sangamo:
The partnership provides a significant financial boost to Sangamo, which has faced financial challenges, including layoffs and a reduced research pipeline. As of March 31, Sangamo had around $54 million in cash and cash equivalents.

Future Prospects:
Sangamo is hopeful that this collaboration could be the first of multiple capsid collaborations with other partners and continues to engage in business development discussions for its various technologies and assets.