Sangamo BioSciences To Buy Ceregene

(RTTNews) - Sangamo BioSciences Inc. (SGMO) has agreed to buy Ceregene Inc., a privately held biotechnology company focused on developing adeno-associated virus gene therapies.

Sangamo's CEO Edward Lanphier said, "Sangamo has acquired all of Ceregene's AAV assets including CERE-110, AAV delivery of nerve growth factor (NGF) to the brain for the treatment of Alzheimer's disease. CERE-110 is being evaluated in a fully enrolled and fully funded Phase 2 clinical trial."

Sangamo will issue to the stockholders of Ceregene 100,000 shares of Sangamo's common stock, which represents less than 0.2 percent of Sangamo's total shares outstanding. Sangamo closed Monday's trading on the Nasdaq at $10.35.

Sangamo has also agreed to make contingent earn-out payments to the stockholders of Ceregene based upon revenues generated from license or sales transaction of certain existing products of Ceregene.

The acquisition is expected to close in September 2013, subject to customary closing conditions.