GlaxoSmithKline amends ofatumumab deal with Genmab; sells Italian research center to Aptuit

UK drugs giant GlaxoSmithKline has amended its agreement with Denmark's Genmab A/S for the co-development and commercialization of ofatumumab, which already marketed as Arzerra for the treatment of chronic lymphocytic leukemia (CLL). Under the new terms, GSK will take responsibility for developing ofatumumab in autoimmune indications whilst continuing to jointly develop ofatumumab with Genmab in oncology indications.

Genmab will receive an upfront payment of £90 million ($134.8 million) from GSK, but future funding commitment for the development of ofatumumab in oncology indications will be capped at a total of £145 million, including a yearly spending cap of £17 million for each of the next six years starting with 2010. Future milestones due to Genmab under the oncology development program will be reduced by 50%. There will be no change in royalty tiers to Genmab in the oncology program.

Amendment will impact on Genmab financial guidance