Immunomedics, Seattle Genetics in $2B cancer drug deal. ‘Seattle’ buys 2.8% stake
February 10, 2017Immunomedics Inc has concluded a $2 billion worth deal with Seattle based developer of antibody-drug conjugates (ACDs) for treating late stage cancer based on which Seattle Genetics will develop, fund, manufacture and commercialize IMMU-132, Immunomedics’ proprietary solid tumor therapy candidate.
Furthermore,Seattle Genetics will have to start the third phase of clinical testing of the candidate. It will be for patients with triple-negative breast cancer. Seattle Genetics will also apply to the FDA for accelerated approval.
Cynthia L. Sullivan, Immunomedics’s CEO and the President said that the IMMU-132 has been clinicaly developed in multiple indications in three years, and now it has advanced the TNBC indication to a possibel accelerated approval. The launching is expected by late 2017 or early 2018.
Financial details
Immunomedics will get $250 million upfront, plus, among other milestone payments, an additional $50 million relating to rights outside the U.S., Canada and the EU.
The remainder of nearly $1.7 billion opens upon reaching certain clinical, development, regulatory and sales milestones.
Seattle Genetics will also invest in Immunomedics and will buy 3 million shares, which will ensure them ownership of 2.8% stake, and will be given a 3year warrant to buy 8,655,804 shares.
“We are delighted to welcome Seattle Genetics to our stockholder base and appreciate their commitment to Immunomedics. Our promising clinical results and this partnership validating the promise of our novel antibody-drug conjugation technology stimulates us to advance our other product candidates using this platform technology,” said Sullivan.
