Repligen in $70 million deal with Pfizer for SMA program

USA-based Repligen (Nasdaq: RGEN) saw its share jump 5.6% to $6.63, after the company revealed it has signed an exclusive worldwide licensing agreement with global drugs behemoth Pfizer (NYSE: PFE) to advance its spinal muscular atrophy (SMA) program, originally in-licensed from Families of SMA (FSMA).

Repligen’s SMA program includes RG3039, a small-molecule drug candidate in clinical development for SMA, as well as backup compounds and enabling technologies. Under the terms of the deal, Repligen is entitled to receive up to $70 million from Pfizer, starting with an upfront $5 million and total potential future milestone payments of up to $65 million as well as royalties on any future sales of SMA compounds developed under the agreement. SMA is an orphan neurodegenerative genetic disease that presents early in life.

“This agreement is consistent with the strategic decision we announced in August 2012 to focus Repligen’s internal efforts on the growth of our bioprocessing business, while seeking external partners for our therapeutic development programs,” said Walter Herlihy, president and chief executive of Repligen, adding: “We believe this collaboration with Pfizer, a leading pharmaceutical company with specialized efforts in orphan and genetic diseases, has the potential to accelerate the development of therapies for SMA.”