Keywords: Seattle Genetics, GlaxoSmithKline, ADC technoilogy, chemotherapy, Licensing, Monoclonal antibodies

Seattle Genetics in deal with GSK for ADC worth up to $402 million

Article | 22 December 2009

• Print This

US biotechnology firm Seattle Genetics has secured an initial $12 million from UK drug giant GlaxoSmithKline under which GSK will acquire the rights to utilize the firm’s antibody-drug conjugate (ADC) technology with multiple antigens to be named by GSK.

“By collaborating with leading companies such as GSK, we are broadening the reach of our proprietary ADC technology while also generating substantial non-dilutive capital for Seattle Genetics,” said Eric Dobmeier, chief business officer of Seattle Genetics. “We now have nine ADC licensees and we have generated more than $35 million during 2009 from new and ongoing ADC collaborations,” he noted.

Enjoying this article? Have the leading Biopharma news & analysis delivered daily on email by signing up for our FREE email newsletter here.

This is the second deal this month for Seattle Genetics, which recently licensed its brentuximab vedotin (SGN-35) to Japan’s Takeda, for $60 million upfront and potential milestones of as much as $230 million (The Pharma Letter December 15).

Under the new deal, GSK is responsible for research, product development, manufacturing and commercialization of all ADC products under the collaboration. Seattle Genetics is eligible to receive from GSK up to $390 million in milestones if all ADCs in the collaboration are commercialized, as well as mid-single digit royalties on worldwide net sales of any resulting products. Seattle Genetics also will receive material supply and annual maintenance fees as well as research support payments for assistance provided to GSK under the collaboration.

ADCs are empowered monoclonal antibodies that carry potent, cell-killing drugs. Seattle Genetics has developed proprietary technology employing synthetic, highly potent drugs that can be attached to antibodies through stable linker systems. The linkers are designed to be stable in the bloodstream and release the drugs under specific conditions once inside targeted cells. This approach is intended to spare non-targeted cells and thus reduce many of the toxic effects of traditional chemotherapy.