Genmab reached the third preclinical milestone in its collaboration with H. Lundbeck, triggering a €1 million payment (approximately $1.3 million). Under the collaboration, Genmab creates novel human antibodies to three central nervous system (CNS) targets identified by Lundbeck, and Lundbeck has access to Genmab’s antibody creation and development capabilities.
Genmab received an upfront payment of €7.5 million (approximately $9.8 million) in October 2010, when the original agreement was made. It reached its first preclinical milestone in December of 2011 and its second in February of 2012; each milestone triggered a payment of €1 million. Lundbeck fully funds the development of the antibodies. If all milestones in the agreement are achieved, the total value of the agreement to Genmab would be approximately €38 million (around $49.7 million), plus single-digit royalties.
Lundbeck has been busy over the past year. In November of 2011, it paid Otsuka Pharmaceuticals $200 million up front as part of a potentially $1.8 billion alliance to develop and commercialize up to five psychiatric and neurology products including Otsuka’s late-stage schizophrenia and/or major depressive disorder candidates aripiprazole depot formulation and OPC-34712 plus three Lundbeck compounds. Lundbeck also partnered with CHDI Foundation back in May to aid preclinical development of Lundbeck’s Huntington’s disease therapeutic candidate, particularly focusing on the compound’s effects on P2X receptors implicated in the disease.
Genmab is no slouch, either—in August, as part of a global license and development agreement for its human anti-CD38 antibody daratumumab (HuMax®-CD38), Genmab accepted a $55 million up-front payment from Janssen Biotech, and an additional DKK 475 million (about $80 million) from Janssen’s parent company Johnson & Johnson. Under terms of the deal, Genmab could receive up to $1 billion in development, regulatory, and sales milestones, plus tiered double-digit sales royalties.