GSK wins rights to leukaemia drug
GlaxoSmithKline has struck a deal worth around $2.1bn (£1.1bn) to acquire the global rights to the Danish biotech firm Genmab’s lead drug, a treatment for leukaemia.The two companies said today they had signed an agreement to co-develop and market HuMax-CD20, an experimental antibody treatment in late-stage development for CD20 chronic lymphocytic leukaemia (CLL) and non-Hodgkin’s lymphoma.
CLL is the most common leukaemia in adults in the US and most of western Europe, with 8,100 to 12,500 new cases in the US every year.
The treatment, Genmab’s most promising drug, is also undergoing Phase II clinical trials – the intermediate stage in drug development – for rheumatoid arthritis.
If the drug works in cancer and various auto-immune and inflammatory diseases, the total value of the deal could exceed £1.1bn.
It is the biggest deal ever signed by a biotech company. Genmab shares surged 24% to hit an all-time high of 424 Danish kroner (£38).
Under the terms of the agreement, Genmab will receive a licence fee of £52m as well as milestone payments of up to £800m. GSK, Europe’s biggest drugmaker, will invest £183m to buy 4.5m shares in Genmab.
In addition, the Danish biotech firm is to receive double-digit royalties on global sales of the drug. It will be responsible for development costs until 2008 after which development costs will be shared equally between GSK and Genmab. GSK will foot the bill for manufacturing and marketing the drug.
Genmab believes the drug, which is expected to be submitted to regulators for approval by 2008, could generate well over $2bn in annual sales. Some analysts have pencilled-in potential sales of up to $5bn in cancer and arthritis.
The deal is the second clinched by GSK in the rapidly growing antibody area in less than a fortnight, following its purchase of the drug firm Domantis for £230m. It forms part of the drug giant’s efforts to build up its portfolio of cancer drugs, which includes Tykerb for breast cancer and the Cervarix cervical cancer vaccine.
“This alliance puts the tremendous strength of GSK’s development, sales and marketing expertise behind HuMax-CD20,” said Genmab’s chief executive, Lisa Drakeman.
“We are looking forward to our collaboration and working together to maximise the value of this product that has the potential to benefit so many patients with different diseases.”
The treatment is a human antibody which binds to the CD20 antigen on the surface of white blood cells, recruiting the body’s natural defences to attack and kill these cancer and disease-producing cells.
Genmab is a biotech firm that specialises in developing human antibody therapies and treatments for cancer, rheumatoid arthritis and other inflammatory conditions.
It also has partnerships to develop drugs with other companies, including the Swiss pharmaceuticals giant Roche.
Source: Julia Kollewe
Tuesday December 19, 2006
Guardian Unlimited
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