Agensys signs accord with Genentech

Agensys, a privately-held US firm, has entered into an agreement withbiotechnology giant Genentech for the research, development and commercialization of therapeutic and diagnostic products to two of the former's proprietary cancer targets.

Under the terms of the deal, Genentech will have exclusive worldwide licenses under Agensys' patent rights for the development of specified therapeutic products and associated diagnostic applications. In addition, Genentech will acquire rights to certain monoclonal antibodies developed at Agensys.

Genentech has made an upfront licensing payment, as well as an equity investment in Agensys preferred stock. Furthermore, the successful development and launch of antibody products to each target would trigger milestone payments that could exceed $90 million, noted Agensys, which would also be entitled to royalties based on the sales of therapeutic products and a share of the profits from diagnostic products.