Seattle Genetics and Genmab Collaborate on Antibody-Drug Conjugate Research

Strategic Insights -

US biotech company Seattle Genetics Inc and Danish rival Genmab A/S announced a collaboration agreement for antibody-drug conjugate (ADC) research. The agreement allows Genmab to use Seattle Genetics' ADC technology, while the US company receives an undisclosed upfront payment and the right to exercise a co-development option for any resulting ADC products. The partners will share future costs and profits on a 50/50 basis if Seattle Genetics opts into an ADC product, or Genmab will pay fees, milestones, and mid-single digit royalties if the US firm does not.

Key Takeaways:

  • Seattle Genetics and Genmab partnered for ADC research, with the Danish company using Seattle Genetics' ADC technology via its HuMax-TF antibody targeting the Tissue Factor antigen.
  • The US company received an undisclosed upfront payment and the right to exercise a co-development option for any resulting ADC products at the end of phase I clinical development.
  • The partners will co-develop and share all future costs and profits for any resulting ADC product on a 50/50 basis if Seattle Genetics opts in.
  • If Seattle Genetics does not opt in, Genmab will pay fees, milestones, and mid-single digit royalties on worldwide net sales.
  • Seattle Genetics has generated over USD 130 million from ADC solution deals, according to its chief business officer Eric Dobmeier.
  • ADCs are monoclonal antibodies that selectively deliver potent anti-cancer agents to tumour cells.
  • Seattle Genetics' technology employs synthetic, highly potent cell-killing agents called auristatins (such as MMAE and MMAF) and stable linker systems that attach auristatin to the antibody.

Statistics:

  • Seattle Genetics has generated over USD 130 million from ADC solution deals.
  • The partners will co-develop and share all future costs and profits for any resulting ADC product on a 50/50 basis.
  • Mid-single digit royalties of 5-9% will be paid by Genmab on worldwide net sales if Seattle Genetics does not opt in.

Sources:

  • (ADPnews) - Sep 14, 2010
  • Seattle Genetics Inc (NASDAQ:SGEN)
  • Genmab A/S (CPH:GEN)
  • (USD 1.0 = EUR 0.777)