Seattle Genetics and Immunomedics have signed a licensing and development deal worth two billion dollars for the latter’s experimental cancer drug.
Under a special global licensing deal, Seattle Genetics will fund, develop, produce, and commercialize IMMU-132 – solid tumor therapy candidate from Immunomedics.
Seattle will also be responsible for starting the third phase IMMU-132 clinical trial in patients suffering from metastatic TNBC (triple-negative breast cancer) and submit initial BLA (biologics license application) to the US FDA (Food and Drug Administration) for quick approval.
Moreover, the agreement incorporates the development of extra indications for IMMU-132, consisting of UC (urothelial cancer), SCLC (small-cell lung cancer), and NSCLC (non-small-cell lung cancer).
Presently, the second phase clinical researches are conducting for such indications in addition to the other indications for solid tumor being researched in the current clinical trials.
As a part of this agreement, Immunomedics will lock $250m for upfront cash payment apart from fifty million dollars associated with rights outside the EU, the US, and Canada.
The agreement also involves the payment of an extra 1.7 billion dollars depending on the achievement of specific, clinical, regulatory, sales, and development landmarks.
These include an expected near-term landmark for BLA acceptance by the FDA for TNBC, extra landmarks depending on IMMU-132’s regulatory approval for TNBC in the United States and other territories. Finally, it’s future regulatory and development landmarks for extra indications ahead of TNBC.
Depending on specific agreement parameters, Immunomedics will also hold the rights to choose for IMMU-132 co-promotion in the US by taking part in 50-percent of the sales efforts.
The deal is likely to close in 2017’s first quarter subject to termination or expiration of the appropriate waiting duration under the custom closing conditions like Hart-Scott-Rodino Antitrust Improvements Act
Cynthia Sullivan, the President and CEO of Immunomedics said – “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 is delaying its 2016 annual meeting of stockholders, which was actually scheduled to take place on February 16, 2017, to give time for the investors to consider this deal’s consequences. According to updates, the meeting has now been rescheduled for March 03, 2017 at 10:00 a.m. ET. The record date remains the same (January 24, 2017).
If this deal happens, it could be a big victory for Seattle Genetics. Hope it gets the full support of its investors!