Genentech, Seattle Genetics Enter Antibody Pact

Genentech and Seattle Genetics, Inc. have entered into an exclusive worldwide license agreement for the development and commercialization of SGN-40, a humanized monoclonal antibody currently in Phase I and II trials for multiple myeloma, chronic lymphocytic leukemia and non-Hodgkin’s lymphoma.

Under the terms of the agreement, Seattle Genetics will receive an upfront payment of $60 million, potential milestone payments exceeding $800 million and royalties on sales of SGN-40. The milestone payments and royalties include $20 million in committed payments during the first two years of the agreement. Genentech will fund future R&D, manufacturing and commercialization costs. Seattle Genetics will continue certain Phase I and Phase II trials and development activities. Seattle Genetics also has an option for co-promotion rights in the U.S.

“This alliance enables us to accelerate and expand development of SGN-40 while we continue to advance our other promising clinical and preclinical development programs,” said Clay B. Siegall, Ph.D., president and chief executive officer of Seattle Genetics. “Genentech’s oncology development expertise, commercial leadership and history of successful strategic alliances make it an ideal collaborator to bring the potential benefits of SGN-40 to patients.”

“We are very interested in the encouraging activity of SGN-40 observed in early trials and we look forward to developing this antibody with Seattle Genetics, in addition to continuing our ongoing collaboration on antibody-drug conjugates,” said Hal Barron, M.D., senior vice president, development and chief medical officer for Genentech. “SGN-40 supports our commitment to developing new hematology therapeutics that may provide novel treatment approaches for a variety of serious hematologic diseases.”