BOTHELL — Seattle Genetics has signed a collaboration deal with a Japanese biotechnology firm that wants to develop the local company’s antibody-drug conjugate technology.
The deal brings Bothell-based Seattle Genetics $4 million immediately, as well as milestone payments and royalties from any approved drugs developed under the collaboration with Daiichi Sankyo.
Seattle Genetics’ patented antibody-drug conjugate technology links powerful antibodies to drugs to make them more potent and targeted toward cancer-causing cells.
The technology’s effectiveness is being tested in Seattle Genetics’ own SGN-35, the company’s most advanced antibody-drug conjugate. It is in phase 1 tests against Hodgkin’s lymphoma and other cancers.
The agreement with Daiichi Sankyo is for the development of conjugates targeting a single antigen, or large molecule, found on numerous types of tumors. Daiichi Sankyo will be responsible for research, product development, manufacturing and marketing, while Seattle Genetics will provide assistance.
Clay Siegall, Seattle Genetics’ chief executive officer, said the new agreement — one of a half-dozen collaborations with other biotechs on antibody-drug conjugate technology — is the most lucrative yet.
While the biotech’s primary focus remains the development of its own cancer drugs, licensing of its technology provides a nice influx of cash in the meantime, Siegall said.
He estimated Seattle Genetics has received more than $70 million in licensing and collaboration payments related to its antibody-drug conjugate technology. Other companies that have licensed the technology include Bayer, Genentech, MedImmune and CuraGen. CuraGen’s conjugate is now in phase 2 testing against metastatic melanoma.
“The technology is something we’re very excited about. It’s become a real business for us,” Siegall said.
Shares of Seattle Genetics rose 20 cents Tuesday to close at $8.12.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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