Seattle Genetics, Abbott expand ADC agreement

BOTHELL, Wash.—Seattle Genetics, Inc. has announced theexpansion of its antibody-drug conjugate (ADC) collaboration with AbbottLaboratories. Under the terms of the expanded agreement, Abbott will paySeattle Genetics an upfront fee of $25 million for the rights to utilizeSeattle Genetics' auristatin-based ADC technology with antibodies to additionaloncology targets. Seattle Genetics will also be eligible for up to $220 millionin potential milestone payments per additional target if certain development andcommercial goals are met, in addition to mid- to high-single-digit royalties onworldwide net sales of any products that result from the collaboration.

Abbott is responsible for research, product development,manufacturing and commercialization of any ADC products under the expandedagreement. Seattle Genetics will also receive annual maintenance fees andresearch support payments for providing assistance to Abbott under theagreement. The partnership originally began in March 2011, with Abbott paying $8million upfront for the rights to make use of Seattle Genetics' ADC technologywith antibodies for a single oncology target.

"ADCs have emerged as an important therapeutic approach tocancer, driven by the FDA approval of ADCETRIS, and encouraging data fromnumerous clinical and preclinical ADC programs in development by SeattleGenetics and our collaborators," Natasha Hernday, vice president of CorporateDevelopment at Seattle Genetics, said in a press release. "We are leading thefield in ADC development, and this expanded collaboration with Abbott furthervalidates our technology and approach in targeting and treating cancer."

The expansion is the second recent development with one ofSeattle Genetics' ADC agreements. Earlier in the month, the company announcedthat it would be receiving undisclosed milestone payments with regards to itsADC collaboration with Genentech, a member of the Roche Group. The milestoneswere achieved by Genentech advancing two ADCs that make use of Seattle Genetics'technology into Phase II clinical development. The ADCs, anti-CD22 (DCDT2980S,RG7593) and DCDS4501A (RG7596), will be tested in a Phase II, randomized,open-label study to evaluate their safety and efficacy. Both compounds will beevaluated in combination with Rituzan in patients suffering from relapsed orrefractory follicular non-Hodgkin lymphoma and relapsed or refractory diffuselarge B-cell lymphoma.

The agreement with Genentech grants the company the right toutilize Seattle Genetics' ADC technology with antibodies against targetsGenentech has selected, with Genentech bearing the responsibility for researchand development, manufacturing and commercialization. As with the agreementwith Abbott, Seattle Genetics is eligible for fees, milestone payments and royaltieson net sales of products that result from the collaboration.

"Progress by our ADC collaborators, notably Genentechentering Phase II clinical development, highlight the continued promise of ADCsfor the treatment of cancer and further support Seattle Genetics' leadershipposition in the field," Clay B. Siegall, Ph.D., president and CEO of SeattleGenetics, said in a press release regarding the announcement. "Across ourinternal and collaborator programs, there are more than 15 ADCs in clinical developmentutilizing our technology, spanning a range of both hematologic malignancies andsolid tumors."