GlaxoSmithKline in $402 million deal with Seattle Genetics

GlaxoSmithKline has signed a deal wit Seattle Genetics worth as much as $402 million for use of the Seattle company’s antibody-drug conjugate technology, according to BizJournals.com. The deal gives GSK the right to develop and commercialize Seattle Genetics’ ADC technology. ADCs are antibodies that carry potent, cell-killing drugs. The technology can be used to reduce many of the toxic effects of traditional chemotherapy. Under terms of the deal, GSK will pay $12 million up front for rights to Seattle Genetics’ ADC technology. Seattle Genetics is eligible for up to $390 million in milestone payments, if all ADCs are commercialized, as well as mid-single digit royalties on worldwide net sales. Seattle Genetics has generated more than $35 million in 2009 on nine ADC licenses.