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GlaxoSmithKline Amends Deal With Genmab

From Associated Press (July 1, 2010)

NEW YORK -- GlaxoSmithKline said Thursday it will take responsibility for the development of ofatumumab as a treatment for autoimmune conditions as part of an amended deal with Genmab.

The companies had been codeveloping the drug candidate and will continue to jointly develop the drug as a potential treatment for cancer.

Genmab will receive an upfront payment of 90 million British pounds ($60 million). Meanwhile, Genmab’s future funding commitment for the development of ofatumumab in cancer indications will be capped at 145 million British pounds ($96.7 million), including a yearly spending cap of 17 million British pounds ($11.3 million) for each of the next six years starting with 2010.

Future milestones due to Genmab under the cancer development program will be halved. There will be no change in royalty tiers to the Denmark-based company in the cancer program.

In the autoimmune indication, Genmab will forego development milestones and the first two sales milestones but will keep a double-digit royalty on sales.

GlaxoSmithKline said it is planning a number of midstage studies to take ofatumumab forward in autoimmune indications.

Shares of GlaxoSmithKline, based in the U.K., fell 9 cents to close at $33.92.


Posted: July 2010