Sangamo BioSciences, Inc. (SGMO - Free Report) recently announced that it has entered into an agreement to acquire privately-held biotech company Ceregene, Inc.
As per the terms of the acquisition, Sangamo will issue 100,000 shares to the stockholders of Ceregene, representing less than 0.2% of total outstanding shares. Additionally, Sangamo will make milestone payments.
The acquisition is expected to close in Sep 2013 and Sanagmo does not expect the acquisition to impact its financial guidance of operating expenses and cash in 2013.
Ceregene focuses on developing adeno-associated virus (AAV) gene therapies. Sangamo will acquire all of Ceregene’s AAV assets, which includes a phase II candidate, CERE-110, being developed for the treatment of Alzheimer's disease.
The acquisition will provide Sangamo with more than 120 issued, pending or in-licensed patents along with other technical knowhow.
Sangamo expects the technical knowhow acquired from Ceregene to provide important reference materials to the company in the preparation and filing of Investigational New Drug (IND) applications for its novel ZFP Therapeutics. We note that Sangamo is evaluating the safety and efficacy of a novel ZFP Therapeutic for the treatment of HIV/AIDS.
We remind investors that Sangamo is also developing therapeutics for hemophilia, Huntington's disease and other monogenic diseases.
Sangamo currently carries a Zacks Rank #2 (Buy). Other stock that looks attractive is Biogen Idec Inc. (BIIB - Free Report) with a Zacks Rank #1 (Strong Buy).
Another acquisition agreement announced recently is that of Amgen (AMGN - Free Report) and Onyx Pharmaceuticals, Inc. under which Amgen will acquire Onyx Pharma for $125 per share in cash or $10.4 billion.