As part of my 2014 predictions, I argued gene therapy would get hot and investor interest would turn toward the monogenic programs at Sangamo Biosciences (SGMO). The partnership announced on Jan. 9 between Biogen Idec (BIIB) and Sangamo confirmed my prediction to a certain extent, albeit sooner in the year than I expected.

Let's discuss what the Biogen partnership means for Sangamo moving forward, and discuss the implications for other gene therapy stocks like Bluebird (BLUE) and Acceleron (XLRN)?

The partnership covers two Sangamo programs: sickle cell disease (SCD) and beta-thalassemia (BT). Sangamo will receive a $20 million upfront payment and is eligible for just about $300 million in future milestones. While it is not explicitly stated, $15 million of those milestones appear to be related to the start of a phase I trial. Sangamo will receive double-digit royalties on sales and retains the right to co-promote in the U.S., assuming drug approval, of course.

Summed up, the new partnership is a nice entry into the gene therapy business for Biogen and continued validation of the Sangamo monogenic disease pipeline.

Sobek has no position in any stocks mentioned in this column.

Read the original post:
The State of Gene Therapy in a Biogen Idec World: Sangamo, Bluebird and Acceleron

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