Genmab in $2.1 billion leukemia deal with GSK

The total potential value of the agreement was much greater than expected and is the largest ever secured by a biotech company, including the $2 billion deal between ImClone Systems and Bristol-Myers Squibb.

Under the terms of the agreement, Genmab will receive a license fee of approximately $102 million, and GSK will invest approximately $357 million to purchase 4.47 million ordinary shares of Genmab. Genmab will be entitled to receive royalties on global sales of HuMax-CD20.

GSK will receive an exclusive worldwide license to HuMax-CD20 as well as an exclusive option to a CD20 UniBody to be developed in collaboration with Genmab. Genmab will be responsible for development costs until 2008, including costs of the two ongoing late stage oncology studies. GSK will be solely responsible for the manufacturing and commercialization of HuMax-CD20.

Genmab will also have an option to co-promote GSK’s drugs Bexxar and Arranon in the US and Atriance in the Nordic region.

“By combining the skills and knowledge of Genmab in developing fully human antibodies, such as HuMax-CD20, and the substantial experience of GSK in clinical and commercial development, we hope to be able to bring this innovative and potentially valuable medicine to patients as soon as possible,” said Dr Moncef Slaoui, chairman of research and development at GSK.