Bayer enters ADC collaboration with Seattle Genetics worth as much as $520 million

BOTHELL, Wash.—Seattle Genetics Inc. recentlyannounced that it has entered into a new antibody-drug conjugate (ADC)collaboration with Bayer HealthCare. Under this latest relationship,Bayer will pay upfront and option exercise fees of up to $20 million forworldwide rights to utilize Seattle Genetics' auristatin-based ADC technologywith antibodies to several oncology targets. Seattle Genetics is also eligibleto receive up to approximately $500 million in potential milestone payments, aswell as royalties on worldwide net sales of any resulting products under themulti-target collaboration. Bayer is responsible for research, productdevelopment, manufacturing and commercialization of all products under thecollaboration.

"The significant clinical and preclinical progressacross our ADC collaborations, and enthusiasm for our technology asdemonstrated by this latest relationship with Bayer, continue to reinforceSeattle Genetics' leadership position in the field," said Natasha Hernday, vicepresident of corporate development at Seattle Genetics. "Across internal andcollaborator programs, there are more than 15 ADCs in clinical developmentusing our technology, and we have the potential to receive more than $3.5billion in future milestones plus royalties from these strategic alliances."

"Bayer is committed to translating the science ofcancers into effective therapies that can help people with cancer live longerand improve their quality of life," said Prof. Andreas Busch, member of theBayer HealthCare Executive Committee and head of Global Drug Discovery."Antibody-drug conjugates are promising approaches in oncology which can attacktumor cells in a much more targeted way for cancer patients, such that healthycells are less severely affected. Antibody-drug conjugates are one of our focusareas in oncology research and we are looking forward to strengthening ourportfolio in this area of personalized medicine through the collaboration withSeattle Genetics."

ADCs are monoclonal antibodies that are designedto selectively deliver cytotoxic agents to tumor cells. With over a decade ofexperience and knowledge in ADC innovation, Seattle Genetics has developedproprietary technology employing synthetic cytotoxic agents and stable linkersystems that attach these cytotoxic agents to the antibody. Seattle Genetics'linker systems are designed to be stable in the bloodstream and release thepotent cell-killing agent once inside targeted cancer cells. This approach isintended to spare non-targeted cells and thus reduce many of the toxic effectsof traditional chemotherapy while enhancing antitumor activity.

SOURCE: Seattle Genetics news release