One day after Bristol-Myers Squibb and Five Prime Therapeutics announced that a randomized Phase II study testing the combination of cabiralizumab and nivolumab (Opdivo®), with and without chemotherapy, failed to improve progression-free survival (PFS) in patients with advanced pancreatic cancer, Five Prime announced a global license agreement with Seattle Genetics to develop and commercialize novel antibody-drug conjugate (ADC) using monoclonal antibodies developed by the company.
Under the terms of the agreement, Five Prime grants Seattle Genetics an exclusive worldwide license to a family of five monoclonal antibodies that are directed to a single target. Seattle Genetics, in turn, will be responsible for ongoing research, development, manufacturing, and commercialization of the ADCs based on these antibodies.
For the multi-product deal, Five Prime will receive a US $ 5 million upfront payment. The company is also eligible to receive progress-dependent development and regulatory milestone payments as well as cumulative commercial milestone payments. Cumulative milestones may reach up to U.S. $ 295 million for the first developed and commercialized ADC.
Five Prime will additionally receive tiered mid-single digit royalties on net product sales.
“We are pleased to enter into this license agreement with Seattle Genetics, a global leader that develops and commercializes transformative targeted cancer therapies that utilize its industry-leading ADC technology,” said William Ringo, Chairman and interim Chief Executive Officer of Five Prime Therapeutics.
“This agreement allows Five Prime to realize value from our pre-clinical pipeline while prioritizing our clinical investments based on upcoming data readouts for our programs. Looking to the future, we will continue to seek strategic partnerships that allow us to maximize the value of our assets and the long-term potential of the company,” Ringo added.