Immunomedics (NSDQ:IMMU) said it landed an exclusive global licensing agreement with Seattle Genetics (NSDQ:SGEN) for Immunomedics’ antibody-drug conjugate, IMMU-132, for the treatment of solid tumors. The deal could potentially bring in $2 billion plus royalties for Immunomedics.
According to the deal, Seattle Genetics is responsible for developing, funding, manufacturing and commercializing IMMU-132. The Washington-based company will also initiate a phase III trial of the antibody-drug conjugate in patients with metastatic triple-negative breast cancer and submit a initial Biologics License Application to the FDA.
The deal also includes the development of other indications for the candidate therapy, including urothelial cancer, small-cell lung cancer and non-small-cell lung cancer, which are in ongoing phase II clinical studies.
Immunomedics will receive $250 million in an upfront cash payment from Seattle Genetics, plus an additional $50 million relating to rights outside U.S. Canada and the European Union. The company is also eligible to earn milestone payments from the deal.
Seattle Genetics plans to make a $57 million equity investment for up to 9.9% stake in Immunomedics by purchasing common stock and a 3-year warrant, the company reported.
IMMU shares were trading at $5.47 apiece in mid-morning activity, up 27.1%.
“We are pleased to enter into this exclusive worldwide licensing agreement with Seattle Genetics to further advance IMMU-132 on behalf of patients with late-stage cancers, who have limited therapeutic options, while delivering significant and compelling near- and long-term value to stockholders,” Immunomedics president & CEO Cynthia Sullivan said in prepared remarks. “Since its founding, Immunomedics has been dedicated to creating and advancing novel therapies in challenging diseases with unmet therapeutic needs. Seattle Genetics’ reputation, development portfolio and track record make them an ideal partner to advance IMMU-132. Additionally, this agreement validates the dedication and effort by our entire internal teams in research and development, manufacturing, clinical, regulatory and general administration. In just over 3 years, we have brought IMMU-132 through clinical developments in multiple indications, and have advanced the TNBC indication to a potential accelerated approval and launch by late 2017 or early 2018, which could make IMMU-132 available to patients dealing with a highly malignant form of breast cancer. We are proud to have achieved this critical milestone and thank our entire team for their hard work. Immunomedics looks forward to appropriately supporting Seattle Genetics as it seeks to bring IMMU-132 to commercialization.”
“As the global leader in ADCs, we are excited to enter into this licensing agreement with Immunomedics for sacituzumab govitecan,” Seattle Genetics president & CEO Clay Siegall added. “This program would complement our rich pipeline of late- and early-stage programs, potentially allowing us to bring a new therapy for triple-negative breast cancer to patients in need. We have successfully demonstrated our expertise in the development, manufacturing and commercialization of ADCs in oncology, and we look forward to working with Immunomedics to advance this program.”