Sangamo Therapeutics (SGMO) Grants Exclusive Rights to STAC-BBB Capsid to Eli Lilly (LLY)

Sangamo Therapeutics, Inc. (SGMO), a biotech firm focused on genomic medicine, announced a licensing deal with Eli Lilly and Company (LLY). This agreement allows Lilly (LLY) to use Sangamo’s (SGMO) proprietary STAC-BBB capsid, a neurotropic adeno-associated virus (AAV) known for its strong capability to cross the blood-brain barrier and effectively reach neurons in nonhuman primate models.

The arrangement gives Lilly (LLY) exclusive global rights to apply the STAC-BBB capsid to a single initial central nervous system (CNS) target, with the option to expand its use to up to four more targets upon paying additional licensing fees. The capsid will be used to deliver Lilly’s (LLY) intravenously administered genomic therapies aimed at treating certain neurological disorders.

"We believe STAC-BBB, our industry-leading intravenously delivered AAV capsid, has the potential to play an important role in the treatment landscape by addressing longstanding challenges associated with delivering therapies to the central nervous system," said Sandy Macrae, CEO of Sangamo. "We are pleased to be sharing STAC-BBB with Lilly to advance potential treatments for neurological diseases with significant unmet medical needs. This marks the third agreement with a pharmaceutical company since we announced the discovery of STAC-BBB in March 2024 and demonstrates the continued industry interest in our capsid delivery technology."

Details of the Licensing Agreement

According to the terms of the deal, Sangamo (SGMO) will carry out a technology transfer to hand over all necessary information and resources related to the STAC-BBB capsid. Lilly (LLY) will take charge of all subsequent activities including research, preclinical and clinical trials, regulatory affairs, manufacturing, and global commercialization of any gene therapy products that result from the partnership.

In return, Sangamo (SGMO) will receive an upfront payment of $18 million and could earn up to $1.4 billion in milestone payments and additional licensing fees tied to the development of up to five neurological disease programs. Sangamo (SGMO) is also entitled to receive tiered royalties based on the net sales of any approved products, subject to specified adjustments.