NEW YORK (GenomeWeb News) — Sigma-Aldrich has made a $7.8 million equity investment in Sangamo BioSciences as part of the companies’ plan to co-develop and market zinc finger-based research reagents, the firms said yesterday.
The companies will use Sangamo’s ZFP technology to develop the reagents for a variety of cell analysis applications including cell lines with enhanced protein production performance, panels of knock-out cell lines for drug discovery, and stem cell and transgenic animal models.
Under terms of the license, Sigma will make an initial payment to Sangamo of $13.5 million, which consists of an upfront license payment and the purchase of 1 million shares of Sangamo common stock at $7.75 per share.
Sigma will also pay Sangamo additional fees and minimum annual payments, along with up to $22 million in development and commercial milestone payments. Sigma will also pay the company royalties based on product sales.
Sigma has the right to sublicense the technology for research applications. If it takes that sublicense it would provide Sangamo with 50 percent of revenues from the sublicense in the first two years and 25 percent of revenues thereafter.