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GEN News Highlights : Aug 3, 2010

Seattle Genetics Gains $12M from Genentech with Expanded ADC Partnership

Genentech added new antigens for research and agreed to over $900 million in milestones.

Genentech is paying Seattle Genetics $12 million to use its antibody-drug conjugate (ADC) technology with additional antigens. The companies have been working together on developing ADCs since 2002. Under the expanded arrangement, Seattle Genetics is eligible to receive more than $900 million in fees and milestones if all related ADCs are commercialized.

Genentech is responsible for research, preclinical, and clinical development, manufacturing, as well as commercialization of ADCs under the expanded agreement. Seattle Genetics is eligible to receive annual maintenance fees and research support payments for potential assistance if requested by Genentech. It will also earn mid-single digit royalties on worldwide net sales of resulting products.

Under the initial ADC partnership established in 2002, Genentech has reportedly paid over $30 million. Seattle Genetics could receive more than $500 million in milestones if all ADCs in this original collaboration are commercialized as well as mid-single digit royalties on worldwide net sales of resulting products.

ADCs are mAbs designed to selectively deliver potent anticancer agents to tumor cells. Seattle Genetics’ technology employs synthetic cell-killing agents called auristatins attached by stable linker systems to the antibody. The linker systems are designed to be stable in the bloodstream and release the cell-killing agent once inside targeted cancer cells.

Seattle Genetics reports that it has generated more than $130 million through its ADC technology license agreements. These include collaborations with Millenium Pharmaceuticals and GlaxoSmithKline.