Genzyme & ISIS Amend Hereditary Cholesterol Pact (GENZ, ISIS)
Genzyme Corp. (NASDAQ: GENZ) and Isis Pharmaceuticals, Inc. (NASDAQ: ISIS) have finalized their license and collaboration agreement for mipomersen, a novel lipid-lowering drug discovered and developed by Isis that is in phase 3 clinical development. This is more of an amended terms to the deal rather than a new deal entirely.
Genzyme will receive exclusive worldwide rights to mipomersen. Enrollment is expected to be completed during the second half of this year in a pivotal study of mipomersen in homozygous familial hypercholesterolemia, and a new trial in apheresis-eligible patients is expected to begin. In short, this is for hereditary high cholesterol that is difficult to lower and that traditional treatment fails to correct.
Isis will receive a $175 million license fee for mipomersen and Isis received a $150 million payment in February from Genzyme to purchase 5 million shares of Isis common stock at $30 per share (Isis stock sits at $14.03, but shares weren’t even $20.00 earlier this year).
Updated deal terms show that Isis will contribute up to $50 million in additional development funding to bring Isis’ development funding commitment up to $125 million through the project. After that hurdle has been hit, Isis and Genzyme will share development costs equally.
The initial Isis development funding commitment and the shared funding will end when the program is profitable. In exchange for this additional contribution, Isis has the opportunity to receive $75 million in milestone payments early. The companies will transition the mipomersen IND and all regulatory authority to Genzyme over the next 30 days and Genzyme will take the lead on discussions with regulatory agencies and filings.
ISIS market cap is $1.34 Billion as of yesterday’s close and it has many other possible candidates in its pipeline for indications such as cancer, diabetes, obesity, arterial disease, MS, Asthma, AIDS, ocular disease, and more.
Jon Ogg
June 24, 2008
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