Gilead Sciences Inc.'s (NASDAQ:GILD) unit Kite has entered an agreement with Sangamo Therapeutics Inc (NASDAQ:SGMO) that will see them collaborating in the development of engineered cell therapies to treat cancer.
Under the deal, Kite will use Sangamo's zine finger nuclease technology platform to develop the next-generation therapies for autologous and allogeneic use in treating different cancers.
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"Allogeneic cell therapies from healthy donor cells or from renewable stem cells would provide a potential treatment option that can be accessed directly within the oncology infusion center, thus reducing the time to infusion for patients," the companies said in a joint statement.
Sangamo will receive US$150mln in upfront payments and will be entitled to up to US$3.01bn in potential payments. It will also receive tiered royalties on the sales of potential future products resulting from the collaboration.
Kite will be responsible for the development, manufacturing and commercialisation of products under the collaboration.
Sangamo shares soared 9.23% at US$24.25 in pre-market while Gilead shares were also up, but only 0.38% at US81.00.