Genentech to pay Seattle Genetics $9.5M for renewing licenses under existing ADC collaboration agreement

Seattle Genetics, Inc. (Nasdaq: SGEN) today announced that Genentech, Inc., a wholly owned member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), will pay $9.5 million to renew exclusive licenses to specific targets and extend the research term under the parties' existing antibody-drug conjugate (ADC) collaboration agreement. Under the terms of the agreement, Genentech has rights to use Seattle Genetics' ADC technology with antibodies against targets selected by Genentech. Genentech is responsible for research, product development, manufacturing and commercialization. Seattle Genetics is entitled to receive fees, progress-dependent milestone payments and royalties on net sales of any resulting ADC products.

“We believe this collaboration, coupled with our multiple other ADC collaborations, reinforces the value of our industry-leading technology”

"We believe this collaboration, coupled with our multiple other ADC collaborations, reinforces the value of our industry-leading technology," said Eric L. Dobmeier, Chief Business Officer of Seattle Genetics. "For Seattle Genetics, these collaborations broaden the reach of our technology into diverse disease settings where empowered antibodies may be able to address significant unmet medical needs. In addition, these deals provide a substantial source of capital as we continue to advance our own pipeline of proprietary antibodies and ADCs for cancer."

Seattle Genetics has generated approximately $120 million through ADC technology license agreements with leading biotechnology and pharmaceutical companies. ADCs utilize the targeting ability of monoclonal antibodies to deliver potent, cell-killing payloads to specific cells. Seattle Genetics' proprietary technology employs synthetic, highly potent drugs attached to antibodies through stable linker systems. The linkers are designed to release the drug payload only under specific conditions once inside target cells, thereby sparing non-target cells many of the toxic effects of traditional chemotherapy.

Source Seattle Genetics