UCB and Immunomedics amend epratuzumab accord

New Jersey, USA-based Immunomedics (Nasdaq: IMMU) and Belgian drugmaker UCB (Euronext Brussels: UCB) have amended their development, collaboration and license agreement for the exclusive worldwide rights to develop, market and sell epratuzumab for all autoimmune disease indications, including lupus. The original $203 million accord between the companies goes back to 2006.

The restructuring provides UCB with the flexibility to select a partner to sublicense its rights for certain territories. Under the terms of the amended deal, in return for the right to sublicense, UCB returned its buy-in right for the cancer indication to Immunomedics.

Immunomedics will receive a non-refundable cash payment totaling $30 million upon execution of the amendment. In the event UCB exercises its right to sublicense, Immunomedics will be entitled to receive an additional cash payment of $30 million and additional payments on achieving new regulatory and sales milestones under the amended collaboration. In addition, Immunomedics will issue to UCB a five-year warrant to purchase one million shares of Immunomedics' common stock at an exercise price equal to $8.00 per share.