Biogen Idec and Isis Pharma collaborate in $100 million upfront deal

US biotech firms Biogen Idec (Nasdaq: BIIB) and Isis Pharmaceuticals (Nasdaq: ISIS) have entered into a broad, multi-year collaboration to leverage antisense technology to advance the treatment of neurological diseases. News of the deal saw Isis’ shares leap 10.5% to $30.86 in mid-morning (September 9) trading.

Under the agreement, which combines Biogen Idec's expertise in neurology with Isis' leadership in antisense technology to develop novel therapies to treat neurological disorders, Biogen Idec will make an upfront payment of $100 million, a majority of which will be reflected as R&D expense in Biogen Idec's third quarter financial results.

Isis is also eligible to receive milestone payments, license fees and royalty payments for all treatments developed through this collaboration, with the specific amount dependent on the modality of the molecule advanced by Biogen Idec. In the case of antisense molecules, the milestone payments could be as much as $220 million, plus additional amounts related to the cost of clinical trials conducted by Isis under the collaboration.