GENENTECH, SEATTLE GENETICS TO COLLABORATE ON CANCER DRUG

U.S. drugmakers Genentech and Seattle Genetics announced that they have entered into an exclusive worldwide license agreement for the development and commercialization of SGN-40, a humanized monoclonal antibody currently in Phase I and II trials in multiple cancer indications.

Under the terms of the agreement, Seattle Genetics will receive an upfront payment of $60 million, potential milestone payments exceeding $800 million and escalating double-digit royalties on annual net sales of SGN-40. The milestone payments, which are dependent on clinical and regulatory events across multiple disease indications worldwide, as well as attainment of certain annual net sales levels, include $20 million in committed payments during the first two years of the agreement.

Genentech will fund future research, development, manufacturing and commercialization costs. Seattle Genetics will continue certain Phase I and II clinical trials and development activities, the costs of which will be reimbursed by Genentech. Seattle Genetics also has an option for co-promotion rights on SGN-40 in the U.S. The completion of the agreement may be subject to Hart-Scott-Rodino approval under United States antitrust laws and customary closing conditions.

SGN-40 is a humanized monoclonal antibody that targets the CD40 antigen, which is highly expressed on most B lineage hematologic malignancies including non-Hodgkin's lymphoma, multiple myeloma and chronic lymphocytic leukemia. CD40 is also found on many types of solid tumors, including bladder, renal and ovarian cancer, and it may play a role in immunologic diseases, according to the companies' release.