Seattle Genetics in antibody-drug conjugate accord with Abbott

In a third licensing deal this year, Seattle Genetics (Nasdaq: SGEN) says it has entered into a collaboration agreement with health care major Abbott Laboratories (NYSE: ABT) under which the latter will pay an upfront fee of $8 million for rights to utilize Seattle Genetics’ antibody-drug conjugate (ADC) technology with antibodies to a single oncology target.

In addition, depending on the achievement o certain development, regulatory and commercial targets, Seattle Genetics is eligible to receive up to around $200 million in milestone payments, as well as royalties on worldwide net sales of any resulting ADC products. Seattle Genetics also will receive annual maintenance fees and research support payments for assistance provided to Abbott under the collaboration. Abbott is responsible for research, product development, manufacturing and commercialization of any ADC products under the collaboration.

“We are pleased to collaborate with Abbott on our ADC technology given their position as one of the world’s leading pharmaceutical companies and their demonstrated commitment to both biologic and oncology therapeutics,” said Eric Dobmeier, chief business officer of Seattle Genetics. “This is the second ADC collaboration with a multinational pharmaceutical company that we have announced this year, further illustrating the important role that our ADC technology is poised to play in the treatment of many types of cancer,” he added.