Company Analysis - Genentech
Seattle Genetics and Genentech - David and Goliath join forces
The powerhouse Genentech made an upfront payment of US $60 million for SGN-40, the smaller company's much-anticipated lead anticancer..At this year's JP Morgan Healthcare conference in San Francisco, a remarkable alliance between Genentech and Seattle Genetics, in a deal worth up to US $800 million, was revealed. The powerhouse Genentech made an upfront payment of US $60 million for SGN-40, the smaller company's much-anticipated lead anticancer. Having garnered significant interest based on positive Phase I results, this humanized monoclonal antibody which targets CD40 is in a Phase II trial in diffuse large B-cell lymphoma, and in Phase I trials in multiple myeloma and chronic lymphocytic leukaemia.
Genentech will fund future research, development, manufacturing and commercialization, with Seattle Genetics retaining an option for co-promotion in the U.S. For Seattle Genetics, this is a big splash in the biotechnology pond, and following the announcement of the alliance, Seattle Genetics' shares rose by 24% on the first day alone. Seattle Genetics now has the financial backing and invaluable technical support to navigate clinical development, with the aim of launching a potential blockbuster. For Genentech, this is yet another step made by one of the most-watched, innovative companies in the entire healthcare industry.
