Seattle enters second ADC research collaboration agreement with Genmab

Genmab A/SApr 19 2011

Genmab A/S (OMX:GEN) and Seattle Genetics, Inc. (NASDAQ:SGEN) announced today that the companies have entered into a second antibody-drug conjugate (ADC) research collaboration agreement. Under the new agreement, Genmab has rights to utilize Seattle Genetics' ADC technology with HuMax-CD74, an antibody in pre-clinical development to target CD74, which is expressed on a wide range of hematological malignancies and solid tumors. Seattle Genetics received an undisclosed upfront payment and has the right to exercise a co-development and co-commercialization option for any resulting ADC products at the end of Phase I clinical development.

"We are very pleased to expand our collaboration with Seattle Genetics, who have been fantastic partners, and at the same time to add a HuMax-CD74 ADC to Genmab's pre-clinical product pipeline," said Jan van de Winkel, Ph.D., Chief Executive Officer of Genmab.

Genmab is responsible for research, manufacturing, pre-clinical development and Phase I clinical evaluation of ADCs under this new collaboration. Seattle Genetics will receive research support payments for any assistance provided to Genmab. If Seattle Genetics opts into an ADC product at the end of Phase I, a payment would be due to Genmab and the companies would co-develop and share all future costs and profits for the product on a 50:50 basis. If Seattle Genetics does not opt in to an ADC product, Genmab would pay Seattle Genetics fees, milestones and mid-single digit royalties on worldwide net sales of the product.

"The expanded collaboration with Genmab provides us with another opportunity to augment our future ADC product pipeline based on data from a phase I clinical trial," said Eric L. Dobmeier, Chief Business Officer of Seattle Genetics. "We now have co-development options for four of our collaborators' ADC programs, reflecting our ability to maximize the potential of our technology through strategic collaborations with organizations that have complementary capabilities."

ADCs are monoclonal antibodies that selectively deliver potent anti-cancer agents to tumor cells. With over a decade of experience and knowledge in ADC innovation, Seattle Genetics has developed proprietary technology employing synthetic, highly potent cell-killing agents called auristatins (such as MMAE and MMAF) and stable linker systems that attach the auristatin to the antibody. Seattle Genetics' novel linker systems are designed to be stable in the bloodstream and release the potent cell-killing agent once inside targeted cancer cells. This approach is intended to spare non-targeted cells and thus reduce many of the toxic effects of traditional chemotherapy while enhancing the antitumor activity.