Seattle Genetics, Agensys Expand ADC Pact

Seattle Genetics, Inc. and Agensys, Inc., an affiliate of Astellas, expanded their antibody-drug conjugate (ADC) collaboration. Under the agreement, Agensys will pay $12 million for exclusive rights to ADC licenses against additional antigen targets. Seattle Genetics also receives an option to co-develop another ADC at the time of IND submission.

“Combining Agensys’ proprietary antibodies, directed to novel cancer targets, with Seattle Genetics’ industry-leading ADC technology has already led to product candidates for different cancer indications, including ASG-5ME, an ADC for cancers including prostate, pancreatic and gastric that is being co-developed by both companies,” said Aya Jakobovits, Ph.D., executive vice president and head of R&D of Agensys. “Expansion of the collaboration will allow Astellas to further enhance its growing pipeline in oncology.”

“Through this broadened collaboration, we continue to leverage the increasing value of our ADC technology to generate revenue as well as to obtain product rights that expand our pipeline of ADCs for the treatment of cancer,” said Eric L. Dobmeier, chief business officer of Seattle Genetics. “We look forward to continuing our work with Agensys to bring ADC programs into clinical trials, including ASG-5ME planned for phase I trials in 2010.”

Under the expanded collaboration, Agensys receives the right to obtain exclusive ADC licenses for multiple additional targets in exchange for an upfront payment fee. Seattle Genetics also receives an option for 50:50 cost and profit-sharing of a third ADC program at IND filing. The remaining ADC programs will be developed and commercialized exclusively by Agensys. Seattle Genetics is entitled to success-based fees, milestone payments and royalties on worldwide sales of ADC products developed and commercialized by Agensys. Under the terms of the amendment, Seattle Genetics is eligible to receive as much as $250 million in development milestones and $100 million in sales milestones if all of the additional ADC programs are successful.