Sangamo Biosciences Continues Its Climb After Pfizer Partnership

On Friday, Sangamo Biosciences (SGMO) continued its climb with a gain of 15%. The prior day the company's stock shot up 60% after it had announced a potential deal with Pfizer (PFE). The deal entailed Pfizer being able to license Sangamo's Hemophilia A drug. That include one of the company's four main drugs known as SB-525. 

Pfizer's interest in Sangamo Biosciences came about because it is interested in targeting companies that are developing gene therapy treatments. The goal for this partnership is to produce a drug that will increase patients' levels of Factor VIII protein. The goal is to achieve such a treatment with just a single administration of the drug. The hope is that the patients' levels of Factor VIII will start to climb, but that will need more testing. 

Under the terms of the agreement, Sangamo received an upfront payment of $70 million. Sangamo will be responsible for starting the phase 1/2 trial and completing it. If the trial runs smoothly, and the results are top-notch, then Pfizer will be responsible for all the rest of the development costs and commercialization.

Pfizer will also be responsible for any other targets using the same SB-525 compound. Sangamo also has the opportunity to earn up to an additional $475 million in milestone payments. That will be split into two different components. That would be Sangamo receiving up to $300 million for development and commercialization for SB-525, then a possible $175 million for any other Hemophilia A products that are developed under the collaboration.