Bangalore (Reuters) - Micromet Inc MITI.O said it signed a cancer-drug development deal with U.S. biotech giant Amgen Inc (AMGN.O) for up to 695 million euros ($1.01 billion) plus royalties and reimbursements.
The deal, which will fetch Micromet 10 million euros ($14.5 million) upon execution, is for research of certain antibodies against three undisclosed solid tumor targets. Amgen has the right to pursue the development and marketing of the antibodies against up to two of the targets.
If milestones in multiple indications and tumor types are achieved, Micromet will be eligible to get up to 342 million euros ($496.2 million) and double-digit royalties on worldwide net sales.
Micromet will be primarily responsible for the discovery and pre-clinical development of the antibodies, while Amgen will lead the clinical development, manufacturing and marketing.
The antibodies, called BiTE antibodies, are designed to direct the body’s cell-destroying T cells to attack tumor cells. Micromet’s pipeline includes antibodies generated with its BiTE technology as well as conventional monoclonal antibodies.
Its lead drug candidate blinatumomab is currently in clinical trials for treating acute lymphoblastic leukemia.
Micromet shares were up nearly 5 percent at $6.03 in pre-market trade. They closed at $5.76 on Friday on Nasdaq. Amgen shares closed at $57.64.
Reporting by Esha Dey in Bangalore; Editing by Sriraj Kalluvila