Immunogen In Cancer Drug Deal With Novartis
From Associated Press (October 11, 2010)
WALTHAM, Mass. -- ImmunoGen Inc. said Monday it licensed a cancer fighting technology to Novartis AG in a deal that could be worth more than $200 million for each drug that Novartis develops.
The deal involves ImmunoGen’s TAP technology, which is designed to treat cancer with antibodies that target tumors. Anti-cancer drugs developed by ImmunoGen are attached to the antibodies, delivering the drugs straight to the tumors. The company said seven TAP drugs are being tested in clinical trials run by ImmunoGen or its partners.
ImmunoGen said it will receive $45 million upfront from the Swiss drug maker, along with financial compensation for any research and manufacturing it does for Novartis. For each compound that is developed and approved, it could receive $200.5 million in payments, plus royalties on sales. Novartis will be responsible for marketing any drugs that are developed under the collaboration.
Separately, ImmunoGen said it expects to lose more money in the current fiscal year. It now forecasts a loss of $60 million to $64 million, up from $50 million to $53 million. On average, analysts expect a loss of $62.4 million, or 97 cents per share, according to Thomson Reuters. ImmunoGen’s fiscal year ends June 30, 2011.
Posted: October 2010