Immunomedics, Inc. (NASDAQ:IMMU) has announced that recently, the company entered into an exclusive global licensing agreement with Seattle Genetics, Inc. (NASDAQ:SGEN) which has the intention to develop, fund, and commercialize drugs, responsible for the treatment of cancer.
This partnership agreement, between the two companies, based on cancer treatment regimes, is valued at $2 billion and is primarily focused on a drug, which is called sacituzumab govitecan (IMMU-132).
The Fine Lines Of The Agreement between These Two Medical Giants
According to the details, which were released, regarding the global licensing agreement, that the two entities entered, Immunomedics, will be privy to receive $250 million in upfront cash. Furthermore, there will be an additional $50 million for rights outside of the United States, Canada, and the European Union.
The remainder of the money, which was agreed upon, will evaluate to approximately $1.7 billion and will serve as contingency money. This essentially can be treated as reward money, for when the companies achieve certain objectives, milestones, development, and, or sales numbers.
Examples, of milestones, to which the companies are striving to achieve, include the upcoming one, which is regarding the acceptance of Biologics License Application, which is under the regulation of the U.S Food And Drug Administration for TNBC.
Further regulations as per the agreement
Although these two companies have entered into a partnership of sorts together. The deal in which, both entities signed, ensured that Immunomedics, still has the ability to negotiate with a number of parties, for additional partnerships, in order to better enhance the development of the companies products.
However, Seattle Genetics will have the right to review these specific parties, if Seattle Genetics, decides that the partner is not a good match, Immunomedics, will be able to still accept the company. However, at the same time Immunomedics, will be legally forced to break the contract between themselves and Seattle Genetics, and pay out a fee for cancellation.