Bayer and Seattle Genetics announced a new collaboration yesterday to create novel ADCs for various cancer indications (undisclosed). Bayer will pay SGEN $20 M upfront to gain access to its high potency auristatins -- drugs that are up to 1000x more potent than traditional chemotherapeutic agents --- and also SGEN technology for delivering the compounds safely.
SGEN could earn an additional $500 M in milestones and royalties (notice back end load to deal). Bayer is responsible for R&D, manufacturing and marketing. Bayer will add the licensed capability to its own ADC development efforts which is a key focus of the company. See Xconomy.
Expect to see these deals to keep comng now that Seattle Genetics has successfully launched its ADC, Adcetris, and Roche has similarly been successful with its ADC, Kadcyla. Roche, GSK, Takeda, and Pfizer have also taken licenses from SGEN in addition to Bayer. More will follow no doubt.
Posted by Bruce Lehr June 26th 2013.