By Tess Stynes
Biogen Idec Inc. (BIIB) entered a six-year research
collaboration with Isis Pharmaceuticals Inc. (ISIS) to develop
treatments for neurological disorders, under which Biogen will gain
exclusive rights to Isis' antisense technology in the neurological
space.
Isis shares were up 7.4% at $30 in recent premarket trading.
Through Friday's close, the stock has more than doubled this
year.
Under the latest agreement, which expands the relationship
between the two drug companies, Isis will receive $100 million
upfront. The deal also includes as much as $220 million in
milestone payments related to the anitsense technology, which is
designed to alter a gene's function. The technology can be used to
silence a mutation, activate a gene to compensate for an underlying
issue, or synthesize a way to effectively turn a gene "on" or
"off."
Most of the $100 million upfront payment will be reflected in
Biogen's third-quarter expenses for research and development.
The accord marks the fourth strategic collaboration between the
two companies. Late last year Biogen inked a deal with Isis to
discover and develop antisense drugs against three undisclosed
targets to treat neurological or neuromuscular disorders that could
see Isis receive over $630 million.
Biogen and Isis are also developing antisense drugs to treat
spinal muscular atrophy and myotonic dystrophy type 1.
Isis is set to hold a conference call on the latest
collaboration Monday at 11:30 a.m. EDT.
Biogen shares closed Friday at $225.18 and were inactive
premarket. The stock is up 54% this year.
Write to Tess Stynes at tess.stynes@wsj.com
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