Sangamo down post-market as Novartis, Biogen end collaborations
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Novartis (NYSE:NVS) said it is ending an agreement it inked in 2020 with Sangamo Therapeutics (NASDAQ:SGMO) to research gene regulation therapies to treat three neurodevelopment disorders.
Biogen (NASDAQ:BIIB) is also ending an agreement with Sangamo (SGMO) on gene regulation therapies to treat neurological diseases.

Both companies said the terminations are due to strategic reviews.
Sangamo (SGMO) said it will explore alternative options including developing the three programs it is working on with the Swiss pharma on its own or find another partner. This will depend on its own review of its pre-clinical pipeline of central nervous system therapies.
Under an agreement, Sangamo (SGMO) received a $75M upfront fee and was eligible to receive $720M in milestones from Novartis (NVS), as well as tiered high single-digit to sub-teen double-digit royalties on sales of products.
With Biogen's (BIIB) 2020 deal, Sangamo (SGMO) received a $125M upfront fee. The agreement also had Biogen (BIIB) purchase ~24.4M shares of Sangamo (SGMO) common stock with $225M. Sangamo (SGMO) was eligible for up to $2.37B in milestones and tiered high single-digit to sub-teen royalties on sales of products.
Read why Seeking Alpha contributor Avisol Capital Partners considers Sangamo (SGMO) a hold.