Sangamo Therapeutics lost two powerhouse partners Friday after it reported that both Novartis and Biogen discontinued focusing on gene regulation therapies in the neurology space.
Pictured: Novartis Headquarters/Courtesy of Getty Images
Sangamo Therapeutics lost two powerhouse partners Friday after it reported that both Novartis and Biogen discontinued their partnerships studying gene regulation therapies in the neurology space.
Biogen and Novartis terminated the agreements following a strategic review, according to Sangamo’s SEC filing posted Mar. 13. Both collaborations will formally end in June 2023.
Sangamo will conduct a broader strategic review of its pre-clinical development assets and investigate alternatives for the development programs left behind by Biogen and Novartis. Depending on the result of its review, Sangamo could continue these programs internally or look for collaborators.
Neither Novartis or Biogen has responded to BioSpace’s request for comment.
As of year-end 2022, Sangamo had $307.5 million in cash, cash equivalents and marketable securities, down considerably from its $464.7 million balance in 2021. Still, the company reported that its funds would be enough to support operations for at least 12 months.
Sangamo representatives said the termination of the Novartis and Biogen partnerships shouldn’t affect its financial standing.
Zinc Finger Partnerships
Sangamo inked its partnership with Biogen in February 2020. For $350 million upfront and the promise of up to $2.37 billion in milestone payments, Biogen gained access to Sangamo’s genome regulation technology to advance candidates for up to 12 neurological and neuromuscular conditions.
Biogen ultimately selected four candidates: ST-501 for tauopathies, ST-502 for synucleinopathies including Parkinson’s disease, a third product for type 1 myotonic dystrophy and a fourth candidate for an undisclosed neurological disease gene target.
In July 2020, Sangamo and Novartis inked an agreement to discover and develop gene regulation therapies for three neurodevelopmental conditions, including autism spectrum disorder. The deal was valued at $75 million upfront and up to $720 million in developmental and commercial milestones.
Beyond the effective termination dates, Sangamo will no longer be eligible to receive milestones and royalties from its partners, nor will Biogen or Novartis be obligated to reimburse research activities related to their respective neuro programs.
At the core of both the Biogen and Novartis partnerships was Sangamo’s proprietary zinc finger technology, which combines a DNA-binding domain with various functional domains like nucleases or transcription factors.
Sangamo has a deep library with thousands of zinc fingers, allowing the company to cater the design of each candidate to a specific therapeutic use.
