GlaxoSmithKline, Genmab Announce Amendment To Ofatumumab Pact

1st Jul 2010 17:19

DOW JONES NEWSWIRES GlaxoSmithKline and Genmab Thursday said they had made an amendment to the ofatumumab co-development and commercialization agreement. MAIN FACTS: -GSK will take responsibility for developing ofatumumab in autoimmune indications whilst continuing to jointly develop ofatumumab with Genmab in oncology indications. -Genmab will receive an up front payment of GBP90 million (DKK 815 million) from GSK. -Genmab's future funding commitment for the development of ofatumumab in oncology indications will be capped at a total of GBP145 million (DKK 1,314 million), including a yearly spending cap of GBP 17 million (DKK 154 million) for each of the next six years starting with 2010. -Future milestones due to Genmab under the oncology development program will be reduced by 50%. -There will be no change in royalty tiers to Genmab in the oncology program. -GSK is currently planning a number of Phase II clinical studies to take ofatumumab forward in autoimmune indications. - Genmab will forego development milestones for autoimmune indications and the first two sales milestones while retaining a double digit royalty on sales. -Amendment to the ofatumumab agreement is expected to have a material impact on Genmab's 2010 financial guidance which will be updated with the company's second quarter report on Aug. 17, 2010. -By Stockholm Bureau, Dow Jones Newswires; +46-8-5451-3090; [email protected] (END) Dow Jones Newswires July 01, 2010 12:19 ET (16:19 GMT)