Carlsbad-based Isis Pharmaceuticals Inc. announced recently that it has signed an agreement with Weston, Mass.-based Biogen Idec Inc. to develop drugs for three neurological diseases. Isis will receive an upfront payment of $30 million from the deal.

It could also receive up to $600 million in license fee and regulatory milestone payments from Biogen — $200 million per drug. Isis is charged with developing the drugs through Phase 2 clinical trials, after which Biogen Idec has the option to license the drugs. Isis will receive what the companies call “double-digit” royalties from the drug sales.

This is the third deal between Isis and Biogen Idec. They are already collaborating on drugs to treat spinal muscular atrophy and myotonic dystrophy type 1.

Biogen Idec was formed in 2003 after a merger between San Diego-based Idec Pharmaceuticals Inc. and Biogen Inc. in Massachusetts.

— SDBJ Staff Report