Isis Pharma could earn $299 million from Biogen Idec deal

US biotech firm Biogen Idec (Nasdaq: BIIB) has entered into an exclusive, worldwide option and collaboration agreement with Isis Pharmaceuticals (Nasdaq: ISIS) under which the companies will develop and commercialize Isis’ antisense investigational drug, ISIS-SMNRx, for the treatment of spinal muscular atrophy (SMA) and could earn Isis as much as $299 million.

Under the terms of the deal, Isis will receive an upfront $29 million and is eligible to receive up to $45 million in milestone payments associated with the clinical development of ISIS-SMNRx prior to licensing. Biogen Idec has the option to license ISIS-SMNRx until completion of the first successful Phase II/III trial. Isis could receive up to another $225 million in a license fee and regulatory milestone payments. In addition, Isis will receive double-digit royalties on sales of ISIS-SMNRx.

Isis will be responsible for global development of ISIS-SMNRx through the completion of Phase II/III registrational clinical trials, with Biogen Idec providing advice on the clinical trial design and regulatory strategy. If Biogen Idec exercises its option, it will assume global development, regulatory and commercialization responsibilities.