>>GENEVA, Switzerland and COPENHAGEN, Denmark, August 18 /PRNewswire-FirstCall/ -- Serono (virt-x: SEO and NYSE: SRA) and Genmab A/S (CSE: GEN - News) announced today an agreement under which Genmab has granted Serono exclusive worldwide rights to develop and commercialize Genmab's HuMax-CD4. HuMax-CD4 is a fully human monoclonal antibody in development for the treatment of cutaneous and non-cutaneous T-cell lymphomas. It is currently being evaluated in a pivotal Phase III clinical trial for cutaneous T-cell lymphoma (CTCL) under the US Food and Drug Administration's Special Protocol Assessment process and has Fast Track designation from the FDA. HuMax-CD4 is also being studied in a Phase II trial for non-cutaneous T-cell lymphoma (NCTCL). HuMax-CD4 is directed against the CD4 antigen and causes depletion of certain T-cells through antibody-dependent cellular cytotoxicity.
Under the terms of the agreement, Genmab will receive a license fee of USD 20 million, and Serono will make a USD 50 million investment in Genmab common stock, at a premium to the market price. Genmab may receive up to USD 215 million in total payments, including the initial license fee and equity purchase, milestone payments for regulatory submissions and approvals of HuMax-CD4 in CTCL and NCTCL in the US, Europe and Japan, and payments based on the achievement of certain sales milestones. Genmab will be entitled to receive royalties on global sales of HuMax-CD4. Serono will be responsible for all future development costs for HuMax-CD4 and for future manufacturing of the product. Genmab will continue to conduct the ongoing clinical trials as described above.
"Serono's proficiency in bringing biotechnology products to market as well as their established presence in highly specialized dermatology clinics, which play a significant role in the diagnosis and treatment of CTCL, makes the company an excellent strategic partner," said Lisa N. Drakeman, Ph.D., Chief Executive Officer of Genmab.
"We are committed to building a strong oncology pipeline through partnerships with leading companies such as Genmab, and through our own internal research," said Ernesto Bertarelli, Chief Executive Officer of Serono. "HuMax-CD4 is an important addition to Serono's oncology portfolio, which now consists of four different clinical-stage products being investigated across a broad range of indications."
Simultaneously with this release, Genmab will publish a separate stock exchange release containing more information regarding the placement of Genmab shares to Serono, which is made in direct connection with the Global Development and Commercialization Agreement regarding HuMax-CD4.<<
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I must say, that MEDX has been one of my best performers over the last couple of years. Bought at $3.65 or so, and I see no reason to cash out any of it yet.
Cheers, Tuck |
