NEW YORK – Sangamo Therapeutics on Monday said it has inked a research evaluation and option agreement with Prevail Therapeutics, under which Prevail may license adeno-associated virus (AAV) capsids.
Prevail, a New York City-based gene therapy developer that is a subsidiary of Eli Lilly, will be able to evaluate certain proprietary AAV capsids developed by Sangamo in in vitro and in vivo studies and may exercise an option to exclusively license the capsids for its own neurological targets.
The capsids, generated through Sangamo's AAV capsid engineering platform, have demonstrated promising results for delivering gene therapy to the central nervous system in preclinical animal models, according to Sangamo.
Brisbane, California-based Sangamo will initially provide the capsids to Prevail for evaluation in exchange for an upfront payment of an undisclosed amount. In an email, a Sangamo spokesperson estimated the total value of the deal at up to $1.1 billion.
Should Prevail exercise the option to license Sangamo's capsids for certain neurological targets, it would lead development, manufacturing, and commercialization efforts for any resulting products. If this deal ultimately leads to commercialized products in the US and Europe, Sangamo will be eligible to receive exercise fees and developmental milestones of up to about $415 million and commercial milestones of up to about $775 million. Sangamo would also be eligible for tiered royalties based on net sales of products that incorporate the capsids.