Genentech in-licenses SGN-40 in R&D deal

Biotechnology major Genentech and fellow USA-based firm Seattle Genetics say that they have entered into a worldwide license and development agreement, in relation to SGN-40, a humanized monoclonal antibody currently being assessed for various cancer indications. Specifically, the agent is in Phase I and II clinical trials for multiple myeloma, chronic lymphocytic leukemia and non-Hodgkin's lymphoma.

Under the terms of the deal, Seattle will receive an upfront fee of $60.0 million, in addition to potential milestone payments totalling $800.0 million. The milestones, which are dependent upon the achievement of various clinical and regulatory goals, include a sum of $20.0 million to be paid in the first two years of the accord. Additionally, the license stipulates that the company is entitled to escalating, double-digit royalties based on annual net sales of the commercialized product.

Genentech has also agreed to fund all future R&D, commercialization and manufacturing costs, after the current studies have been completed. The San-Francisco-headquartered company will reimburse Seattle for costs incurred in relation to ongoing studies.