Seattle Genetics Enters Into Collaboration With GlaxoSmithKline

Seattle Genetics has entered into a collaboration agreement with GlaxoSmithKline (GSK) under which GSK will pay an upfront fee of $12m for rights to utilize Seattle Genetics’ antibody-drug conjugate (ADC) technology with multiple antigens to be named by GSK.

Eric Dobmeier, chief business officer of Seattle Genetics, said: “By collaborating with leading companies such as GSK, we are broadening the reach of our proprietary ADC technology while also generating substantial non-dilutive capital for Seattle Genetics. We now have nine ADC licensees and we have generated more than $35m during 2009 from new and ongoing ADC collaborations.”

GSK is responsible for research, product development, manufacturing and commercialization of all ADC products under the collaboration. Seattle Genetics is eligible to receive from GSK up to $390m in milestones if all ADCs in the collaboration are commercialized as well as mid-single digit royalties on worldwide net sales of any resulting ADC products. Seattle Genetics also will receive material supply and annual maintenance fees as well as research support payments for assistance provided to GSK under the collaboration.

ADCs are empowered monoclonal antibodies that carry potent, cell-killing drugs. Seattle Genetics has developed proprietary technology employing synthetic, highly potent drugs that can be attached to antibodies through stable linker systems.