Genmab, GlaxoSmithKline deal

GlaxoSmithKline will assume full responsibility for the development of ofatumumab in autoimmune indications after amending a 2006 co-development deal with Genmab for the mAb against CD20. In exchange, Genmab will receive a £90 million ($135.5 million) payment. The partners also will change the funding responsibilities for their joint development of ofatumumab in cancer indications. Genmab's total funding contribution in those indications will be capped at £145 million ($218.3 million), including a yearly spending cap of £17 million ($25.6 million) for the next six years. Genmab will forego future development milestones and the first two sales milestones for autoimmune indications, while retaining a double-digit royalty on autoimmune sales. In cancer, Genmab's potential milestones will be reduced by 50%. Royalties from the cancer program will remain unchanged (see BioCentury, Jan. 1, 2007). ...