Micromet and Amgen Collaborate on Cancer Research for Up to $695 Million

Strategic Insights -

Micromet, Inc. has entered into a collaboration agreement with Amgen Inc. for the research of BiTE antibodies against three undisclosed solid tumor targets. Amgen will have the right to pursue development and commercialization of BiTE antibodies against up to two of these targets. The collaboration is expected to bring in significant non-dilutive capital for Micromet, aligning with the company's strategy to expand development of BiTE antibodies into solid tumor indications.

Key Takeaways:

  • Micromet and Amgen collaborate on cancer research for up to three undisclosed solid tumor targets, with Amgen having the right to pursue development and commercialization of BiTE antibodies against up to two of these targets.
  • The collaboration agreement includes upfront payment of €10 million upon deal execution, with Micromet eligible to receive up to €342 million in clinical and commercial milestone payments.
  • Micromet is also eligible to receive up to double-digit royalties on worldwide net sales, with the combined potential payments from both programs being approximately €695 million.
  • The collaboration is expected to bring in significant non-dilutive capital for Micromet, supporting the company's strategy to expand development of BiTE antibodies into solid tumor indications.
  • Micromet will be primarily responsible for the discovery and pre-clinical development of the BiTE antibodies, with Amgen leading the clinical development, manufacturing, and commercialization.
  • The agreement also includes a second BiTE program, with Micromet eligible to receive an additional cash payment upon initiation, milestones, royalties, and development funding comparable to the first program.

Statistics:

  • Upfront payment of €10 million upon deal execution
  • Maximum deal value of €695 million plus royalties and development cost reimbursement
  • Potential for Micromet to receive up to €342 million in clinical and commercial milestone payments
  • Combined potential payments from both programs, excluding reimbursement of research and development costs, being approximately €695 million
  • Initial development plan contemplates €25 million in funding of Micromet R&D activities if two BiTE antibodies are advanced to IND

Sources:

  • "Micromet Announces Collaboration with Amgen for the Research of BiTE Antibodies Against Solid Tumor Targets" - Micromet, Inc. press release
  • "Micromet Inc. (MITI) and Amgen Enter Cancer Collaboration" - Bloomberg article
  • Amgen Inc. website - "Collaboration with Micromet, Inc."