GSK and Genmab agree development deal for ofatumumab

GlaxoSmithKline (GSK) and the Denmark-head quartered Genmab are to co-develop and commercialise HuMax-CD20 (ofatumumab), a human monoclonal antibody in late stage development for certain types of lymphoma and in Phase II for rheumatoid arthritis.

Genmab will receive a license fee of DKK 582 million (£52m), and GSK will invest DKK 2033m (£183m) to purchase, 4,471,202 ordinary shares of Genmab. The total potential value of this agreement, in the event of full commercial success, in cancer and various autoimmune and inflammatory diseases, could exceed around £1.1 bn. In addition, Genmab will be entitled to receive tiered double digit royalties on global sales of HuMax-CD20.

GSK will receive an exclusive worldwide license to HuMax-CD20 as well as any other antibodies with affinity for the CD20 antigen, which Genmab may develop. It will also have an exclusive option to CD20 UniBody to be developed in collaboration with Genmab.

Genmab will be responsible for development costs until 2008, including costs of the two ongoing late stage oncology studies after which development costs will be shared equally between both companies. GSK will be solely responsible for the manufacturing and commercialisation of HuMax-CD20.

The agreement is subject to review by the US Government under the Hart-Scott-Rodino Act and will become effective after clearing review.

Dr Moncef Slaoui, chairman of r&d, GSK, said: "We believe that this alliance is a significant step for GSK and Genmab. By combining the skills and knowledge of Genmab in developing fully human antibodies, such as HuMax-CD20, and the substantial experience of GSK in clinical and commercial development, we hope to be able to bring this innovative and potentially valuable medicine to patients as soon as possible."

Genmab, which has operations in Europe and the US, has multiple partnerships to gain access to disease targets and develop novel human antibodies including agreements with Roche and Amgen.