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12:00 AM
 | 
Apr 06, 2015
 |  BioCentury  |  Finance

Cashing in on Kadcyla

Why ImmunoGen opted for TPG deal for Kadcyla royalties

Four months after a Phase III miss for Kadcyla ado-trastuzumab emtansine sent ImmunoGen Inc. (NASDAQ:IMGN) tumbling, the biotech landed a $200 million royalty deal that will help fund its internal pipeline while still allowing plenty of upside from the breast cancer drug.

TPG will pay ImmunoGen $200 million in exchange for 100% of ImmunoGen's Kadcyla royalties up to either $235 million or $260 million, depending on timing. Beyond this threshold, ImmunoGen will receive 85% of Kadcyla royalties and TPG the rest.

ImmunoGen receives 2-5% tiered royalties on Kadcyla sales from Roche (SIX:ROG; OTCQX:RHHBY), which markets the drug for HER2-positive breast cancer previously treated with a taxane and...

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