Genmab and Lundbeck enter agreement to develop antibody therapeutics

Genmab A/S (Copenhagen:GEN) announced today an agreement to create and develop human antibody therapeutics for disorders of the central nervous system (CNS) with H. Lundbeck A/S. Genmab will create novel human antibodies to three targets identified by Lundbeck. Lundbeck will have access to Genmab's antibody creation and development capabilities, including its state of the art, fully automated pre-clinical antibody screening and characterization capabilities and its proprietary stabilized IgG4 and UniBody therapeutic antibody platforms. Lundbeck will have an option to take selected antibodies into clinical development at its own cost and subject to the payment of milestones and single-digit royalties to Genmab upon successful development and commercialization. Genmab will have a similar option to take selected antibodies into clinical development for cancer indications at its own cost and subject to the payment of milestones and single-digit royalties to Lundbeck.

Under the terms of the agreement, Genmab will receive an upfront payment of [Eur]7.5 million (approximately DKK 56 million). Lundbeck will fully fund the development of the antibodies. If all milestones in the agreement are achieved, the total value of the agreement to Genmab would be approximately [Eur]38 million (approximately DKK 283 million), plus single-digit royalties.

"We are pleased to enter into this collaboration with Lundbeck, world experts in the development of CNS therapeutics. It gives Genmab the opportunity to leverage our antibody technology and expertise and to expand our pipeline into a new and exciting therapeutic area without assuming a financial obligation," said Jan van de Winkel, Chief Executive Officer of Genmab.

"Genmab's broad antibody development expertise and Lundbeck's knowledge in CNS disorders is an ideal combination for developing new treatments in this important therapeutic area," said Peter Hongaard Andersen, Executive Vice President, Head of Research at Lundbeck. "The new partnership follows Lundbeck's new R&D strategy to ensure we have the most efficient platform for the future discovery and development of drugs that will be able to help and treat biologically defined groups of patients with brain diseases. It is this type of drugs we expect will be in demand in the future."

This agreement is not expected to have a material impact on Genmab's 2010 financial guidance.

SOURCE Genmab A/S