UPDATE 1-Lundbeck and Genmab sign research deal

* Deal could be worth 38 mln euros for Genmab plus royalties

* Genmab to receive upfront payment of 7.5 mln euros

* Lundbeck to get access to Genmab’s antibody creation

* Genmab shares up 2 pct

(Adds detail, background, share price reactions)

COPENHAGEN, Oct 13 (Reuters) - Danish drugmaker Lundbeck LUN.CO and biotech company Genmab GEN.CO have entered a research collaboration agreement on developing antibody therapeutics, the companies said on Wednesday.

Under the deal, Genmab will create new human antibodies for disorders of the central nervous system (CNS) for Lundbeck, the companies said in separate statements.

Genmab will receive an upfront payment of 7.5 million euros ($10.4 million), and the total value of the deal could be around 38 million euros for Genmab, plus single-digit royalties if all milestones are met, the companies said.

Lundbeck, which will fully fund the development of the antibodies, announced on Sept. 22 it would seek more external partners to cooperate on discovering and developing drugs as part of a new research strategy. [ID:nLDE68L1KE]

Genmab announced on Sept. 14 an updated strategy to focus on strategic partnerships for drug development. [ID:nLDE68D0G3]

Lundbeck said on Wednesday that access to Genmab’s UltiMab technology will allow it “to pursue valuable CNS targets otherwise not accessible”.

“Lundbeck’s new research strategy emphasises the need for access to human antibody technology as a tool to address targets inaccessible by small molecules,” the firm said.

The companies said the deal does not affect their full-year 2010 earnings guidance.

Shares in Genmab rose 2 percent to 64.65 crowns at 0724 GMT, outperforming the MSCI European pharma, biotech and life sciences index .MIEU0PB00PEU while much larger Lundbeck's shares rose 1 percent to 101.40 crowns, slightly outperforming the Stoxx Europe Healthcare index .SXDP. (Reporting by Mette Fraende and Anna Ringstrom; Editing by Michael Shields)