UPDATE 2-Seattle Genetics, Pfizer in $208 mln antibody tech deal

Thu Jan 6, 2011 9:56am EST

Related Topics

* Seattle to get $8 mln upfront, $200 mln in milestones

* Deal gives Pfizer right to cancer conjugate technology

* Pfizer to supply material, maintenance fee

* Seattle Genetics shrs up 3 pct (Adds background, updates share movement)

BANGALORE, Jan 6 (Reuters) - Seattle Genetics (SGEN.O) said it would receive $208 million from Pfizer Inc (PFE.N) for giving the world's biggest drugmaker the rights to utilize its antibody technology to treat a single cancer target.

Seattle Genetics, which has signed ten such deals so far, said it would receive $8 million upfront and over $200 million in milestone payments.

Its new partner Pfizer will be responsible for research, product development, manufacturing and commercialization of products, Seattle said in a statement.

Pfizer will supply material, annual maintenance fees and research support payments for assistance provided by the biotechnology firm, it said.

The deal involves development of antibodies to a single cancer target using Seattle Genetics' antibody-drug conjugate (ADC) technology.

Seattle Genetics' technology consists of monoclonal antibodies, auristatins, which deliver potent anti-cancer agents to affected cells.

It currently has in testing potential treatments for non-Hodgkin lymphoma, renal cell carcinoma and certain autoimmune diseases in early-stage studies. The company is also conducting a combination study for the treatment of non-Hodgkin lymphoma and multiple myeloma.

The company had signed a similar deal with Japan's Takeda Pharmaceutical Co (4502.T) on the compound brentuximab as a potential treatment for Hodgkin's lymphoma.

Both companies expect to file for marketing application of Brentuximab in the first quarter to treat patients with either Hodgkin's lymphoma or anaplastic large cell lymphoma (ALCL) who have stopped responding to other therapies.

The company also has a partnership with Astellas Pharma (4503.T) on the antibody-drug conjugate ASG-5ME, which is currently in early-stage studies as a treatment for pancreatic and prostate cancer.

It also counts Roche Holding AG (ROG.VX) and GlaxoSmithKline (GSK.L) among its partners.

Shares of Seattle Genetics were up 3 percent at $16 in early trade Thursday on Nasdaq. Pfizer shares were up 2 cents at $18.13 on the New York Stock Exchange. (Reporting by Vidya L Nathan in Bangalore; Editing by Vyas Mohan)

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