Seattle Genetics, Inc.
) further expanded its antibody-drug conjugate (ADC)
AbbVie will pay an upfront fee of $25 million for additional
rights of using Seattle Genetics' ADC technology with AbbVie
antibodies against oncology targets. Seattle Genetics could
receive up to $255 million from AbbVie in the form of potential
license fees, royalties on worldwide net sales of any resulting
products and future milestone payments on achieving predetermined
development and commercial objectives.
We note that in Mar 2011,
) (prior to its spin-off of AbbVie) had entered into a
collaboration agreement with Seattle Genetics under which Abbott
paid an upfront fee of $8 million for rights to utilize Seattle
Genetics' ADC technology with its antibodies to a single oncology
target. In Oct 2012, the deal was expanded and Abbott paid an
additional $25 million. Seattle Genetics were to receive up to
$220 million under that deal.
As per the agreement, AbbVie is responsible for research,
product development, manufacturing and commercialization of ADC
products. Seattle Genetics will also receive annual maintenance
fees and research support payments for assistance provided to
AbbVie in developing ADCs.
ADCs have lately been attracting a lot of interest with major
companies entering into collaborations. 18 out of 30 ADC
candidates in clinical development use Seattle Genetics'
proprietary ADC technology. Seattle Genetics has alliances with
many companies for the development of ADCs.
Seattle Genetics and AbbVie carry a Zacks Rank #3 (Hold).
Investors may consider
PharmaTech (Cayman) Inc.
), which carries a Zacks Rank #1 (Strong Buy).
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