Seattle Genetics Strikes Deal with Immunomedics

On Feb. 10, 2017 Seattle Genetics announced that it has entered into a development and license agreement with Immunomedics to develop, manufacture, and commercialize sacituzumab govitecan (IMMU-132). Sacituzumab govitecan is an antibody-drug conjugate (ADC) targeted to TROP-2, which is expressed in several solid tumors, including cancers of the breast, lung, and bladder.

Sacituzumab govitecan is in a Phase I/II trial for patients with triple-negative breast cancer (TNBC), as well as multiple other solid tumors. The ADC received a Breakthrough Therapy designation from FDA for the treatment of patients with TNBC who have failed prior therapies for metastatic disease. Data from the Phase I/II trial are intended to serve as the basis for a planned biologics license application (BLA) submission, Seattle Genetics said in a statement.

The deal includes an upfront payment to Immunomedics of $250 million with milestone payments up to $1.7 billion. Seattle Genetics is also purchasing approximately $15 million in common stock in Immunomedics and has been granted the right to purchase additional shares for $4.90 (a share)? for a defined period.

Immunomedics received pushback when venBio Select Advisor, the company’s largest stockholder, issued a statement slamming the deal. The company voiced its concerns in a press release, saying it was a “seemingly poor deal.”

“Immunomedics’ announcement of a deal with Seattle Genetics is a blatant and shameful maneuver by the current Board and management to manipulate the outcome of the upcoming Annual Meeting and entrench themselves at the expense of stockholders’ best interests, and venBio is exploring all options to hold them accountable,” Behzad Aghazadeh, managing partner and portfolio manager at venBio, said in a statement.

Source: Seattle Genetics, Seeking Alpha