Seattle Genetics gets milestone as Astellas unit moves cancer drug into Ph I

US biotechnology firm Seattle Genetics (Nasdaq: SGEN) has achieved a milestone under its antibody-drug conjugate (ADC) collaboration with Agensys, which was acquired by Japan's Astellas Pharma in 2007 for a consideration of $537 million. The milestone was triggered by Agensys' initiation of a Phase I trial for AGS-16M8F, an ADC for the treatment of cancer utilizing Seattle Genetics' technology.

'This trial initiation increases the total number of ADC programs utilizing our technology currently in clinical trials to eight, further extending the investigation of our technology for the treatment of multiple types of cancer,' said Eric Dobmeier, chief business officer of Seattle Genetics. 'Our ADC collaborations generate substantial financial resources for Seattle Genetics, including more than $130 million received to date. We also have the potential to receive approximately $2.7 billion in milestone payments if all collaborator ADCs are commercialized, as well as royalties on net sales of resulting ADC products,' he noted.

Under the terms of the ADC collaboration agreement, Agensys has rights to use Seattle Genetics' ADC technology with monoclonal antibodies against targets selected by Agensys. Agensys is responsible for research, product development, manufacturing and commercialization activities. Seattle Genetics is entitled to progress-dependent fees, milestone payments and mid-single digit royalties on worldwide net sales of ADC products developed and commercialized solely by Agensys.