(By Balaseshan) Seattle Genetics Inc. (NASDAQ: SGEN) said it has expanded its antibody-drug conjugate (ADC) collaboration with Abbott Laboratories (NYSE: ABT). This could further validate Seattle's technology and approach in targeting and treating cancer.
Under the expanded deal, Abbott will pay an upfront fee of $25 million for rights to utilize Seattle Genetics' auristatin-based ADC technology with antibodies to additional oncology targets. ADCs are monoclonal antibodies that are designed to selectively deliver cytotoxic agents to tumor cells.
In addition, Seattle Genetics may receive up to $220 million in potential milestone payments per additional target upon achieving predetermined development and commercial objectives, as well as mid-to-high single-digit royalties on worldwide net sales of any resulting products under the multi-target collaboration.
"ADCs have emerged as an important therapeutic approach to cancer, driven by the FDA approval of Adcetris, and encouraging data from numerous clinical and preclinical ADC programs in development by Seattle Genetics and our collaborators," said Natasha Hernday, vice president of corporate development at Seattle Genetics.
Seattle Genetics and Abbott originally entered into an ADC collaboration in March 2011 under which Abbott paid an upfront fee of $8 million for rights to utilize Seattle Genetics' ADC technology with antibodies to a single oncology target.
Abbott is responsible for research, product development, manufacturing and commercialization of any ADC products under the expanded collaboration.
In addition to the upfront payment and potential milestone payments and royalties, Seattle Genetics will receive annual maintenance fees and research support payments for assistance provided to Abbott under the collaboration.
SGEN is trading down 1.50 percent at $25.64 on Tuesday, while ABT is trading down 1.40 percent at $64.89.