Genmab amends cancer drug co-promotion agreement with GSK

Under the terms of the amendment, Genmab is expected to receive a one-time payment of $4.5m from GlaxoSmithKline (GSK) upon the FDA’s acceptance for review of the filing of the first biologics license application for Arzerra (ofatumumab) in an oncology indication in the USA in exchange for terminating its option to co-promote ofatumumab.

Under the original terms of the companies’ agreement, Genmab had an option to co-promote ofatumumab in a targeted oncology setting in the US and in the Nordic region. In addition, if Genmab exercised the co-promotion option, Genmab would have had the option to co-promote GSK’s Bexxar and Arranon in the US and Atriance in the relevant countries of the Nordic region.

Pursuant to the current amendment, Genmab has sold its co-promotion option rights to GSK. The sale of the co-promotion option does not affect the royalty or milestone revenue that Genmab may receive.

Lisa Drakeman, CEO of Genmab, said: Under the amendment to our agreement, GSK will now be fully responsible for the entire sales organization for ofatumumab. We believe this is the most cost effective and efficient manner to achieve market penetration and bring value to Genmab if ofatumumab receives approval from the FDA.