Amgen in up to 695 million-euro BiTE antibody deal with Micromet

US drug discovery firm Micromet (Nasdaq: MITI) stands to earns as much as 695 million euros ($991 million) under the terms of a collaboration with biotech major Amgen (Nasdaq: AMGN) for the research of BiTE antibodies against three undisclosed solid tumor targets. Amgen will have the right to pursue development and commercialization of BiTE antibodies against up to two of these targets, to be selected by Amgen. The news sent Micromet’s shares 5.7% higher to $6.09 while Amgen slipped 1.1% to $57.00 in mid-day trading.

Under the terms of the agreement, Amgen is expected to pay 10 million euros on the execution of the deal. If milestones in multiple indications and tumor types are achieved, Micromet is eligible to get up to 342 million euros in clinical and commercial milestone, as well as up to double-digit royalties on worldwide net sales.

“The BiTE antibody provides an innovative approach to cancer therapy,” said Roger Perlmutter, executive vice president of R&D at Amgen, adding: “Amgen is pleased to collaborate with the Micromet scientific team to deploy this technology against targets for the treatment of solid tumors.”