BioCentury
ARTICLE | Company News

ADC Therapeutics, Spirogen, AstraZeneca deal

October 21, 2013 7:00 AM UTC

AstraZeneca's MedImmune LLC biologics unit partnered with ADC Therapeutics to co-develop two of the biotech's undisclosed preclinical antibody-drug conjugate (ADC) cancer programs. ADC Therapeutics will receive an undisclosed upfront payment and is eligible for undisclosed development milestones. The biotech also has an option to co-promote one of the programs in the U.S. MedImmune and ADC Therapeutics will share costs and profits. Private equity firm Auven Therapeutics (formerly Celtic Therapeutics), which launched ADC Therapeutics last year, expects the two programs to enter clinical testing in 12-18 months. MedImmune and Auven each are making a $20 million equity investment in ADC Therapeutics, and MedImmune's Bahija Jallal will join ADC's board.

MedImmune also acquired Spirogen, which was majority owned by Auven, and its preclinical assets for $200 million in cash up front, plus up to $240 million in milestones. Spirogen's existing licensing agreements and associated revenue streams are excluded from the acquisition and have been transferred to a holding company 75% owned by Auven. MedImmune said SG2000 and related IP are part of the Spirogen acquisition, but Auven retains an option to acquire the product after Phase II testing under a 2009 deal. The small molecule pyrrolobenzodiazepine (PBD) dimer is in Phase I/II testing for leukemia. The holding company will also retain rights under previous agreements between the Genentech Inc. unit of Roche (SIX:ROG; OTCQX:RHHBY, Basel, Switzerland) and Seattle Genetics Inc. (NASDAQ:SGEN, Bothell, Wash.). ...