Immunomedics announces receipt of $5M from Nycomed for reaching clinical milestone

Immunomedics, Inc. (Nasdaq:IMMU), a biopharmaceutical company focused on developing monoclonal antibodies to treat cancer and other serious diseases, today announced the receipt of $5 million from Nycomed for reaching a clinical milestone under the license and collaboration agreement, entered into on July 11, 2008. Nycomed has the worldwide rights to develop, manufacture and commercialize veltuzumab, in the subcutaneous formulation, for the treatment of all non-cancer indications. 

This is the second milestone payment received by the Company from Nycomed. Under the terms of the agreement, Immunomedics could potentially receive up to $580 million from Nycomed upon achievement of certain clinical, regulatory, and sales-based milestones. The agreement also provides the Company with escalating double-digit royalties on net sales of veltuzumab. 

In addition, in a separate transaction this month, the Company received $4.3 million in proceeds from the liquidation of one of the Auction Rate Securities (ARS).

"We are pleased with the progress Nycomed has made on the development of veltuzumab," commented Gerard G. Gorman, Senior Vice President, Finance and Business Development, and Chief Financial Officer of Immunomedics. "Our cash position has been substantially bolstered with the receipt of this milestone payment, which is related to the study of veltuzumab in rheumatoid arthritis, and with the proceeds from the recent ARS sale," Mr. Gorman added.