J&J buys into Genmab cancer drug
pharmafile | August 31, 2012 | News story | Sales and Marketing | Cancer, Genmab, Janssen Cilag, Janssen-Cilag, Johnson & Johnson, multiple myeloma
Danish biotech company Genmab has sold the worldwide rights for one of its cancer drugs to Johnson & Johnson-owned Janssen Biotech.
Janssen will pay $55 million upfront for daratumumab and J&J Development Corporation will invest a further $80 million in 5.4 million new Genmab shares, giving it a 10.7% equity stake in the company.
The deal, when potential development, regulatory and sales milestone payments and double digit royalties are taken into account, could top $1.1 billion, Genmab says.
The licensing represents a major boost for Genmab’s coffers, and the Copenhagen-based firm as a result expects revenues for this year to be up $10 million to between $73 million and $78 million.
“This agreement significantly strengthens our financial position, ensuring that Genmab can continue to develop much needed differentiated antibody therapeutics to help cancer patients in the future,” said chief executive Jan van de Winkel.
In addition, Janssen will put up the full cost of developing and commercializing the drug, including the money for two ongoing phase I/II studies.
Daratumumab (HuMax-CD38) is a human CD38 monoclonal antibody in development for multiple myeloma – a rare condition with few treatment options but a market which analysts expect to reach $5.4 billion by 2016
Success would pitch it against such brands as Onyx’s proteasome inhibitor Kyprolis, which recently gained accelerated approval from US regulators for late-stage cases, and Takeda’s older Velcade.
Genmab and Janssen hope the drug could have possibilities in other oncology areas such as acute myeloid leukemia.
“Daratumumab is an exciting, innovative compound, and we are delighted to add it to our portfolio,” said William N. Hait, head of Janssen R&D.
Adam Hill
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