BioMarin buys rights to Repligen preclinical compounds

BioMarin Pharmaceuticals (Nasdaq: BMRN) has entered into an agreement to purchase from fellow USA-based Repligen Corp (Nasdaq: RGEN) the latter’s histone deacetylase inhibitor (HDACi) library and related intellectual property.

Potential applications of the HDACi portfolio include Friedreich's ataxia and other neurological disorders. Repligen shares jumped as much as 12% on the news, though closing the day 8.9% higher at $14.13.

Under the terms of the deal, BioMarin will provide Repligen with an upfront of $2 million. Repligen is also eligible to receive another $160 million in various milestone payments if the compounds in the deal make it through clinical testing and are approved or marketing. The biotech firm would also get royalties on the HDACs if they eventually hit the market.