Sangamo Signs $20 Million Gene Therapy Deal with Astellas; Shares Surge

RICHMOND, California - Sangamo Therapeutics, Inc. (NASDAQ:SGMO) announced that it has entered into a licensing agreement with Astellas Pharma Inc. (TSE:4503), leading to a 23% increase in the company’s stock prices. Under the agreement, Sangamo will receive a $20 million upfront payment in exchange for granting Astellas an exclusive worldwide license for the STAC-BBB capsid technology for gene therapy applications in neurological diseases. The STAC-BBB capsid, developed by Sangamo, is designed to cross the blood-brain barrier and deliver gene therapies directly to the central nervous system. This technology aims to overcome significant challenges encountered in the treatment of neurological disorders. Sangamo's CEO, Sandy Macrae, expressed confidence in the potential of the STAC-BBB capsid to transform therapeutic delivery to the brain. Macrae noted that the agreement with Astellas recognizes the capabilities of the capsid and reflects Sangamo's commitment to partnerships that explore the use of this technology. According to Adam Pearson, Astellas’ Chief Strategy Officer, the partnership with Sangamo aligns with Astellas’ strategy to enhance its ability to build a comprehensive gene therapy portfolio and develop treatments for genetic neurological conditions. Astellas will assume responsibility for the research, development, and commercialization of any gene therapy products arising from the use of the STAC-BBB capsid. In addition to the upfront payment, Sangamo could receive up to $1.3 billion in potential milestone payments for additional licensed targets as well as tiered royalties on net sales of products developed through collaboration. The licensing agreement represents a strategic move for both companies, enhancing Sangamo’s proprietary technology contribution and expanding Astellas’ portfolio in the field of gene therapy.