Benzinga | Jan 6, 2022 06:59AM EST

Sangamo Therapeutics Announces Sanofi Notified Co. Of Its Termination Of Collaboration Agreement, Effective June 28, 2022

On December 30, 2021, Bioverativ Therapeutics Inc. (f/k/a Biogen Idec Ma Inc.) ("Sanofi") notified Sangamo Therapeutics, Inc. ("Sangamo") of its termination for convenience, effective June 28, 2022 (the "Termination Date"), of the Global Research, Development and Commercialization Collaboration and License Agreement, dated as of January 8, 2014, by and between Sangamo and Sanofi (the "Collaboration Agreement"), pursuant to which Sanofi and Sangamo are engaged in research programs to develop therapeutics for hemoglobinopathies, including sickle cell disease (the "Collaboration Research Programs"). In its notice to Sangamo, Sanofi indicated that its termination relates to Sanofi's change in strategic direction to focus on allogeneic universal genomic medicine approaches rather than autologous personalized cell therapies. Under the Collaboration Agreement, Sangamo granted Sanofi an exclusive, royalty-bearing license, with the right to grant sublicenses, to use certain zinc finger protein and other technology controlled by Sangamo for the purpose of researching, developing, manufacturing and commercializing licensed products developed thereunder, and Sangamo received a $20 million upfront license payment and is entitled to receive potential regulatory, clinical development and sales milestone payments, assuming the achievement of all specified milestones, of up to $276.3 million, $13.5 million of which has been achieved to date. As of the Termination Date, the Collaboration Agreement will be terminated in its entirety and following the Termination Date, Sangamo will not be entitled to receive any further milestone payments or royalties from Sanofi. As of the Termination Date, Sanofi will have no further obligations to develop or to fund the development of any Collaboration Research Programs under the Collaboration Agreement.

In accordance with the terms of the Collaboration Agreement, Sanofi has agreed to work with Sangamo to develop a transition plan with respect to Sanofi's activities under the Collaboration Agreement and the transfer of certain data, information and regulatory materials pertaining thereto generated by or on behalf of Sanofi. Sangamo expects that the Phase 1/2 PRECIZN study of SAR445136, the cell therapy candidate for the treatment of sickle cell disease currently in development under the Collaboration Agreement, will be completed as planned and that the final patients in the study will be dosed in the third quarter of 2022. Sangamo expects that Sanofi will continue to pay the costs of the Phase 1/2 PRECIZN-1 study until the Termination Date as contemplated by the Collaboration Agreement. Sangamo expects to investigate alternative options to advance the SAR445136 program, including seeking a potential new collaboration partner.