4 January 2012 - US Biogen Idec (NASDAQ:BIIB) and Isis Pharmaceuticals Inc (NASDAQ:ISIS) said today they have sealed an exclusive, worldwide option and collaboration deal to develop and commercialise Isis' antisense investigational drug, ISIS-SMNRx, for the treatment of spinal muscular atrophy (SMA).

Under the contract, Isis will receive a USD29m (EUR22.4m) upfront payment and is eligible to receive up to USD45m 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 study.

Isis could receive up to another USD225m in a licence fee and regulatory milestone payments. Further, 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 responsibility for the global development, regulatory and commercialisation.

(USD1 = EUR0.772)