Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : HuMAB companies -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (594)	12/22/2003 7:40:06 AM
From: nigel bates	Respond to of 1022

Repeat: Pfizer Deal MorphoSys' Biggest Upfront Payment Monday December 22, 5:46 am ET FRANKFURT -(Dow Jones)- MorphoSys AG said Monday that a deal to generate therapeutic antibodies for U.S. pharmaceuticals giant Pfizer Co will mean the largest upfront payment from a drug development partner in the German biotechnology company's history. Although the five-year research collaboration - worth a potential total $50 million to MorphoSys - isn't the company's largest partnership deal, the upfront payment is "significantly higher" than the $3 million it received upfront from U.S. biotech company Centocor Inc. in a partnership signed in December 2000, Chief Financial Officer Dave Lemus said in an interview with Dow Jones Newswires. That upfront payment was the largest prior to the Pfizer deal, Lemus said. Biotech partnerships typically involve an upfront payment, plus milestones for goals reached in the development of products as well as royalties on sales generated from those products that eventually make it to market. Earlier Monday, MorphoSys announced it will generate therapeutic antibodies to be used on disease-related targets identified by Pfizer. Pfizer will carry out the preclinical and clinical development and subsequent marketing of any commercial products resulting from the partnership, for which MorphoSys will receive an undisclosed upfront payment, milestone payments and royalties on any products approved for sale. MorphoSys shares surged on the news, trading up 14.9%, or EUR1.36, at EUR10.50 by 1023 GMT. Lemus said the payment "will have a substantial effect on our cash balance" and will boost revenues going forward, but he said he can't say whether the payment will be booked this year or early 2004. "The impact on 2003 revenues will probably be minimal, but obviously it will help next year," he said. "The impact is more toward future years," Lemus said. Lemus declined to say how many targets are involved in the deal, but said pharmaceutical companies on average pay between $7.5 million and $12 million per antibody, including upfront and milestone payments. "You can get a rough idea of the number of targets by taking a look at the size of the deal," he said, pointing to the potential $50 million MorphoSys stands to gain from the partnership, excluding royalties. Lemus also said the targets provided by Pfizer aren't limited to any disease area. Targets can be normally occurring constituents of the body such as enzymes, hormones and DNA; non-normal constituents such as tumors and antigens; or invading agents such as viruses. Getting Pfizer on board is a significant boost for MorphoSys, he said. "It tells me that Pfizer believes it can achieve something with our technology that it can't achieve with others'," he said. Pfizer also has antibody cooperations with MorphoSys' major competitors, U.K.- based Cambridge Antibody Technology Group , and U.S.-based Medarex Inc. (NasdaqNM:MEDX - News) and Abgenix Inc. (NasdaqNM:ABGX - News) . Unlike most antibody companies, which derive their antibodies from mice, MorphoSys develops human antibodies without using animals. Some analysts believe the human antibodies are tolerated better by patients than the mice-derived ones. Company Web site: morphosys.com -By Angela Cullen, Dow Jones Newswires; 49 69 2972 5500; angela.cullen@dowjones.com

To: Icebrg who wrote (594)	1/12/2004 9:13:31 AM
From: Icebrg	Read Replies (1) \| Respond to of 1022

Seattle Genetics Announces Expansion of ADC Collaboration with Protein Design Labs Monday January 12, 9:08 am ET Seattle Genetics Also Obtains Rights Under PDL's Antibody Humanization Patents BOTHELL, Wash.--(BUSINESS WIRE)--Jan. 12, 2004-- Seattle Genetics, Inc. (Nasdaq:SGEN - News) announced today that it has expanded its existing antibody-drug conjugate (ADC) collaboration with Protein Design Labs (PDL) (Nasdaq:PDLI - News). Under the amended agreement, Seattle Genetics will provide additional research and development support to PDL for products combining PDL's therapeutic antibodies and Seattle Genetics' proprietary ADC technology. In exchange, PDL has agreed to pay Seattle Genetics increased fees, milestones and royalties under the modified ADC collaboration. PDL has also granted Seattle Genetics a license and options for two additional licenses under PDL's antibody humanization patents. Financial details were not disclosed. "ADCs utilize the targeting ability of monoclonal antibodies to deliver potent, cell-killing payloads to specific cells. This is an increasingly important approach to antibody-based therapeutics, and we are excited to assist PDL in their continued development of products employing our leading ADC technology," stated Clay B. Siegall, Ph.D., President and Chief Executive Officer of Seattle Genetics. "We are also pleased to obtain rights to PDL's antibody humanization technology, which will benefit our current and future product pipeline." Under the terms of the amended collaboration agreement, PDL has rights to obtain exclusive licenses to Seattle Genetics' ADC technology for use with antibodies against targets selected by PDL. PDL pays Seattle Genetics fees for research and development support and materials, as well as progress-dependent milestone payments and royalties on net sales of any resulting ADC products. PDL is responsible for research, development, manufacturing and commercialization of any products resulting from the collaboration. In December 2003, the companies announced that PDL had exercised an option for an exclusive license to one antigen target under the collaboration agreement, which triggered a payment to Seattle Genetics. Seattle Genetics has developed novel second-generation ADC technology employing synthetic, highly potent drugs that can be attached to antibodies through proprietary linker systems. The linkers are designed to be stable in the bloodstream but to release the drug payload under specific conditions once inside target cells, thereby sparing non-target cells many of the toxic effects of traditional chemotherapy. ADCs may increase the therapeutic potential of antibodies that have targeting ability but no inherent cell-killing activity on their own.