UCB pulls out of epratuzumab licensing deal with Immunomedics

US biotech firm Immunomedics (Nasdaq: IMMU) revealed today that it had received notice from Belgian drugmaker UCB (Euronext: UCB) terminating the May 2006 development, collaboration and license agreement for epratuzumab for all non-cancer indications worldwide.

Immunomedics’ shares fell 1.9% to 2.07 euros on Thursday but recovered to $2.10, a rise of 1.45% today.

Under an amended collaboration in 2011, UCB agreed to pay Immunomedics $30 million up front; an additional $30 million if UCB exercised its right to sublicense, plus additional unspecified payments tied to achieving regulatory and sales milestones (The Pharma Letter December 29, 2011). The termination follows the disclosure in July that epratuzumab failed two Phase III trials (TPL July 28, 2015). Under the terms of the agreement, the companies will now begin the transition process in a timely and orderly fashion.