Under the terms of the agreement, Nycomed will be responsible for all costs associated with current and future clinical development, manufacturing and commercialization of veltuzumab in subcutaneous formulation for all non-cancer indications. Immunomedics will continue to conduct the ongoing Phase I/II trial in immune thrombocytopenic purpura (ITP) and will be reimbursed by Nycomed for all such expenses.
Immunomedics will receive a non refundable initial cash payment of $40 million, subject to applicable Hart-Scott-Rodino Act approval, and could receive potential cash milestone payments of up to $580 million upon completion of certain clinical, regulatory, and sales-based milestones, as well as escalating double-digit royalties on sales of veltuzumab.
Nycomed will develop veltuzumab in rheumatoid arthritis as the primary indication. The agreement also provides Immunomedics with an option to co-promote veltuzumab for the ITP indication, which is an autoimmune disease treated by the same physician specialty (hematologists/oncologists) that treat blood cancers such as non-Hodgkin’s lymphoma and chronic lymphocytic leukemia.
If Immunomedics exercises its option, it will have sole responsibility for all sales calls for ITP in the US, with profits from these sales shared between the two companies in accordance with a pre-arranged percentage allocation.
Cynthia Sullivan, president and CEO of Immunomedics, said: “We are pleased to have an option to co-promote the ITP indication as this presents us with an opportunity to begin to build a hematology-oncology sales force, if we deem it to be advisable in the future.”