April 10, 2020 2:31pm
SGMO closed Thursday at $0.48 or +6.88% to $7.46
SGMO has received $225 million in stock proceeds; will receive additional $125 million upfront license fee by 5/8/2020
SGMO is also eligible to earn up to $2.37 billion in other development, regulatory and commercial milestone payments, including up to $925 million in pre-approval milestone payments and up to $1.445 billion in first commercial sale and other sales-based milestone payments
SGMO closed its previously announced sale of stock to Biogen (BIIB) and that the global licensing collaboration agreement for the development and commercialization of gene regulation therapies for Alzheimer’s, Parkinson’s, neuromuscular and other neurological diseases is now effective.
Under the terms of the collaboration, Sangamo has received $225 million from the purchase by BIIB of newly issued SGMO stock and will receive an upfront license fee of $125 million from Biogen no later than May 8, 2020.
Sangamo is also eligible to earn tiered high single-digit to sub-teen double-digit royalties on potential net commercial sales of products arising from the collaboration.
The BOTTOM LINE: The “transaction exemplifies a strategy to partner assets when collaborator’s financial resources and clinical and therapeutic area expertise will enable more rapid development.” Adds a whole lot of “whoomph” to its last reported cash position of $362.47 million offset by debt of $44.41 million; also, might help “kill” the 14.26% short position