Syros Pharmaceuticals Inc. (NASDAQ: SYRS) and Global Blood Therapeutics Inc. (NASDAQ: GBT) shares were on the move on Wednesday after the companies announced that they have entered into a collaboration to develop and commercialize novel therapies for sickle cell disease and beta thalassemia.
Under the agreement, Syros will use its leading gene control platform to identify therapeutic targets and discover drugs that induce fetal hemoglobin, and GBT will receive an option to obtain an exclusive worldwide license to develop, manufacture and commercialize products resulting from the collaboration.
As per the terms of the agreement, GBT will pay Syros $20 million upfront and fund up to $40 million in preclinical research for at least three years. Should GBT exercise its option under the agreement, Syros could receive up to $315 million in option exercise, development, regulatory, commercialization and sales-based milestones per product candidate and product resulting from the collaboration.
Additionally, Syros would also receive mid- to high-single-digit royalties on sales of products resulting from the collaboration. Syros would have the option to co-promote the first product resulting from the collaboration in the United States.
Ted W. Love, M.D., president and CEO of GBT, commented:
The discovery and development of novel therapeutic approaches to treat sickle cell disease has been a driving force for GBT since we were founded. We believe that Syros’ approach to inducing fetal hemoglobin is one of the most promising ways to identify the next generation of therapies to treat sickle cell disease and beta thalassemia at a fundamental level – upstream of serious complications such as organ damage, organ failure and early death. We will continue to seek the best scientific approaches to transform the treatment of these devastating lifelong diseases.
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Shares of Syros Pharma were last seen up about 17% at $5.39, in a 52-week range of $4.45 to $11.93. The consensus price target is $13.50.
GBT was down about 5% to $73.97 a share. The 52-week range is $34.92 to $79.95, and the consensus price target is $101.50.
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