By Chris Wack
Genmab A/S (GEN) said Tuesday it has entered into an exclusive world-wide license and option agreement with Janssen Biotech Inc. to develop and commercialize HexaBody-CD38, a next-generation human CD38 monoclonal antibody cancer product incorporating Genmab's proprietary HexaBody technology.
Genmab said in a release it will collaborate exclusively with Janssen, a division of Johnson & Johnson, on HexaBody-CD38. Genmab will fund research and development activities until completion of clinical proof of concept studies in multiple myeloma and diffuse large B-cell lymphoma.
Based on the data from these studies, Janssen could exercise its option and receive a world-wide license to develop, manufacture and commercialize HexaBody-CD38. Should this occur, Janssen will pay Genmab a $150 million option exercise fee and up to $125 million in development milestones, as well as a flat royalty rate of 20% on sales of HexaBody-CD38 until 2031, followed by 13%-20% tiered royalties on sales thereafter.
Should Janssen not exercise its option, the terms of the agreement allow Genmab to continue to develop and commercialize HexaBody-CD38 for Darzalex-resistant patients, and in all other indications except those multiple myeloma or amyloidosis indications where Darzalex is either approved or is being actively developed.
Genmab said that this deal won't materially impact its 2019 financial guidance.
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