What happened Shares of Sangamo Therapeutics (NASDAQ: SGMO) closed up 28% on Friday after the biotech announced a deal with Biogen (NASDAQ: BIIB) to develop up to 12 drugs using Sangamo's proprietary zinc finger protein technology. So what The deal includes ST-501 for tauopathies including Alzheimer's disease, ST-502 for synucleinopathies including Parkinson's disease, and a third drug for an undisclosed neuromuscular disease. Biogen also has the option to nominate up to nine additional neurological disease targets over the next five years. For each drug, Sangamo will perform the early research before handing over the reigns to Biogen, which will develop and commercialize the drugs. Sangamo will manufacture the drug used in the initial clinical trials for the first three drugs, at which point Biogen will take over manufacturing duties. Image source: Getty Images. Biogen is paying $350 million upfront to Sangamo, with $125 million as a license fee payment and $225 million as an equity investment. Sangamo is eligible for up to $2.37 billion in milestone payments, including up to $925 million in preapproval milestone payments and up to $1.445 billion in sales-based milestone payments. The biotech is also eligible for high-single-digit to sub-teen double-digit royalties on sales of any drugs that make it through the marathon of drug development. Now what This is clearly a great deal for Sangamo, with plenty of up-front cash to help pay for its pipeline of other drugs. Investors just need to keep in mind that drugs from this deal are still preclinical, and the rest of Sangamo's pipeline is all relatively young, with no drugs in phase 3 development. 10 stocks we like better than Sangamo TherapeuticsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Sangamo Therapeutics wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Brian Orelli has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Biogen. The Motley Fool has a disclosure policy.Source