Sigma-Aldrich Licenses DNA Regulation Technology for $13 Million
According to Sangamo, if all milestones are achieved, the company could be eligible to receive $60 million in payments. ZFPs have the ability to add, delete, activate, correct and repress a target gene. Among the possible research applications of ZFPs are the generation of panels of cell lines for use in drug screening and the creation of cellular models of disease and transgenic animals. As part of the agreement, Sigma-Aldrich and Sangamo will undertake a three-year research collaboration.
St. Louis, MS and Richmond, CA 7/10/07—Sigma-Aldrich has licensed Sangamo BioSciences’ zinc finder DNA-binding proteins (ZFPs) for development of research reagents for the regulation of gene expression in living cells. Sigma-Aldrich also acquired rights to sublicense the technology for research applications. Sigma-Aldrich will initially pay Sangamo $13.75 million in the form of an upfront licensing payment and purchase of one million shares of Sangamo stock for $7.75 per share. Additional payments will be made to Sangamo, which is eligible to receive up to $22 million, depending on milestones. In addition, Sangamo will receive royalty payments and 50% of sublicensing revenues in the first two years and 25% thereafter. “We believe that Sangamo’s ZFP technology could fundamentally alter the way in which research on living cells and organisms is conducted. By vastly improving the precision and efficiency with which genomes of living organisms can be modified and regulated, ZFPs provide significant potential for both research and development,” stated Sigma-Aldrich President and CEO Jai Nagarkatti.
