Sangamo Therapeutics has signed an evaluation and option agreement with Eli Lilly and Company’s subsidiary Prevail Therapeutics to evaluate adeno-associated virus (AAV) capsids.
Prevail will perform in vitro and in vivo studies on some of Sangamo’s AAV capsids.
In exchange, Sangamo will receive an upfront payment. It will also receive exercise fees and developmental milestones of $415m, upon Prevail’s exercising its option for all targets.
If the product is approved in Europe and the US for each target, Sangamo will also obtain commercial milestones of $775m, along with tiered royalties.
These royalties are provided based on net sales of Prevail products incorporating the licensed capsids.
In addition, Prevail will lead all activities, including manufacturing, commercialisation and development of products incorporating the capsids.
Sangamo chief operating officer Mark McClung stated: “We believe these innovative new capsids have the potential to broaden addressable indications in the field of genomic medicines, opening up potential new treatment options for patients in need.
“This agreement highlights the value of our AAV capsid engineering programme, not only for the discovery of novel capsids for the advancement of our wholly owned programmes but also as an opportunity to work with partners to broaden the scope of diseases addressable with AAV gene therapy.
“We are thrilled to work with Prevail to evaluate our novel capsids for neurological targets and are pleased that other genomic medicine companies recognise their potential value.”
