Shares for Isis Pharmaceuticals Inc. rose 5 percent on news that the company has received a $10 million milestone payment from Weston, Mass.-based Biogen Idec Inc.
Isis (Nasdaq: ISIS) closed day trading at $34.17, with a market capitalization of $3.9 billion.
The company received the payment for its development of a treatment for myotonic dystrophy type 1 — a rare but severe disease that causes muscular atrophy. It affects about 150,000 in the U.S., Europe and Japan, the company said.
Isis’ drug, called Isis-DMPK, uses its proprietary antisense platform, which uses RNA to deactivate faulty, disease-causing proteins.
Isis partnered with Biogen Idec in June 2012, receiving an upfront payment of $12 million, with the option to receive up to $59 million in clinical development milestone payments. Under the deal, it could receive up to $200 million from licensing and regulatory milestones, as well as double-digit royalties from the sale of the drug.
— Meghana Keshavan