Swiss pharmaceutical giant Roche Holding (SIX:ROG) AG has inked a deal with Sangamo Therapeutics as the company continues its pursuit of an effective treatment for Alzheimer’s disease.
The deal was announced on Tuesday through Roche’s Genentech research arm.
Roche has licensed Sangamo’s zinc finger technology to develop genomic medicines for specific neurodegenerative diseases. This agreement grants Roche exclusive rights to molecules designed to suppress the gene responsible for producing tau, a protein considered a key factor in Alzheimer’s disease.
Additionally, Roche has secured rights to molecules targeting a second, undisclosed neurology target and a newly discovered adeno-associated virus capsid. This microscopic shuttle has demonstrated the ability to cross the blood-brain barrier in primate studies, potentially addressing significant challenges in brain drug development.
According to Sangamo CEO Sandy Macrae this development “has the potential to address longstanding challenges in delivering therapeutics to the central nervous system”.
Sangamo is now optimistic its deal with Roche “could be the first of multiple capsid collaborations to come with other partners”.
Deal terms
The deal, valued at nearly US$2 billion, includes an upfront payment of US$50 million to Sangamo, with the potential for an additional US$1.9 billion contingent on achieving specific development and commercial milestones. Sangamo will also receive tiered royalties on net sales of any resulting products.
Under the agreement, Sangamo will handle some preclinical activities, while Genentech will lead clinical development, regulatory interactions, manufacturing, and global commercialisation.
For Sangamo, this partnership offers a crucial influx of capital. The company, which recently reduced its research pipeline and implemented layoffs affecting 40% of its workforce, had approximately US$54 million in cash and cash equivalents as of March 31.