If option exercised, and compound successfully developed, value of the deal could reach $395 million.

Bayer Schering Pharma is paying €4.5 million, or about $6 million, to secure a one-year option to one of Micromet’s preclinical BiTE antibodies against an undisclosed oncology target. Micromet could earn another €290 million, or almost $389 million, in an additional option fee and milestone payments.

Bayer Schering Pharma may exercise its option prior to January 5, 2010. If the option is exercised, the firms will enter a formal collaboration to develop the antibody through to the completion of Phase I trials. After this, Bayer Schering Pharma will assume full control of development and commercialization.

Micromet will also receive double-digit royalties based on tiered net sales of the product. The firm will also be reimbursed for its R&D expenses incurred in connection with the development of the BiTE antibody in the collaboration with Bayer Schering Pharma.

BiTE antibodies are designed to direct the body’s cytotoxic T cells against tumor cells. Typically antibodies cannot engage T cells, because T cells lack the appropriate receptors for binding antibodies. The use of BiTE antibodies that are specifically designed to engage T cells for attacking cancer cells may provide a more effective antitumor approach than conventional mAbs, according to the companies.


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