ImmunoGen (IMGN) shares rose 8% in pre-market trade after the company struck a deal worth at least $175 million with Jazz Pharmaceuticals (JAZZ) to develop and commercialize antibody-drug conjugate (ADC) products.
Jazz will pay ImmunoGen an upfront payment of $75 million and up to $100 million in development funding over seven years to support the ADC programs. Also, Jazz may exercise its opt-in right at any time prior to a pivotal study or prior to a biologics license application by paying an fee of mid-double digit millions or low triple digit millions, respectively. Immunogen would also be eligible for milestone payments and tiered royalties as a percentage of sales.
Under the agreement, Jazz gets exclusive, worldwide rights to opt into development and commercialization of two early-stage, hematology-related ADC programs, as well as an additional program to be designated during the term of the agreement.
The programs covered include ImmunoGen’s IMGN779, a CD33-targeted ADC for the treatment of acute myeloid leukemia in phase 1 testing, and IMGN632, a CD123-targeted ADC for hematological malignancies expected to enter clinical testing before the end of the year.
ImmunoGen will be responsible for the development of the three ADC programs prior to any potential opt-in by Jazz. Following any opt-in, Jazz would be responsible for any further development as well as for potential regulatory submissions and commercialization.