Seattle Genetics, Inc. (Nasdaq: SGEN), today announced that it will receive a $5 million milestone payment under its ADCETRIS (brentuximab vedotin) collaboration with Takeda Pharmaceutical Company Limited (Takeda). The milestone was triggered by Takeda surpassing annual ADCETRIS net sales of $100 million in its territories. The milestone will be recognized as royalty revenue in the first quarter of 2014.
“This sales milestone, along with the recent approvals of ADCETRIS in Japan, Singapore and Australia, illustrate the strong commercial and regulatory progress being made by Takeda in its territories,” said Clay B. Siegall, Ph.D., President and Chief Executive Officer at Seattle Genetics. “Through approvals and marketing authorizations in 39 countries to date and a significant clinical development program involving more than 30 clinical trials, we and Takeda are committed to bringing ADCETRIS to patients in need worldwide.”
Seattle Genetics and Takeda are jointly developing ADCETRIS. Under the terms of the collaboration agreement, Seattle Genetics has U.S. and Canadian commercialization rights and Takeda has rights to commercialize ADCETRIS in the rest of the world. Seattle Genetics is entitled to royalties based on a percentage of Takeda's net sales in its territory at rates that range from the mid-teens to the mid-twenties based on sales volume, subject to offsets for royalties paid by Takeda to third parties. In addition, Seattle Genetics is entitled to receive progress- and sales-dependent milestone payments based on net sales of ADCETRIS within Takeda’s licensed territories. Seattle Genetics and Takeda are also funding joint development costs for ADCETRIS on a 50:50 basis, except in Japan where Takeda is solely responsible for development costs.
About Seattle GeneticsSeattle Genetics is a biotechnology company focused on the development and commercialization of innovative antibody-based therapies for the treatment of cancer. Seattle Genetics is leading the field in developing antibody-drug conjugates (ADCs), a technology designed to harness the targeting ability of antibodies to deliver cell-killing agents directly to cancer cells. The company’s lead product, ADCETRIS ® (brentuximab vedotin) is an ADC that, in collaboration with Takeda Pharmaceutical Company Limited, has been approved for two indications in more than 35 countries, including the U.S., Canada, Japan and members of the European Union. Additionally, ADCETRIS is being evaluated broadly in more than 30 ongoing clinical trials. Seattle Genetics is also advancing a robust pipeline of clinical-stage ADC programs, including SGN-CD19A, SGN-CD33A, SGN-LIV1A, ASG-22ME and ASG-15ME. Seattle Genetics has collaborations for its ADC technology with a number of leading biotechnology and pharmaceutical companies, including AbbVie, Agensys (an affiliate of Astellas), Bayer, Genentech, GlaxoSmithKline and Pfizer. More information can be found at www.seattlegenetics.com. Certain of the statements made in this press release are forward-looking, such as those, among others, relating to the potential commercial opportunity for ADCETRIS and the potential for approval of ADCETRIS in other countries. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include risks that ADCETRIS may not receive the regulatory approvals expected or even if regulatory approvals are obtained, payment and reimbursement for the use of ADCETRIS may be less than projected. More information about the risks and uncertainties faced by Seattle Genetics is contained in the company’s 10-Q for the quarter ended September 30, 2013 filed with the Securities and Exchange Commission. Seattle Genetics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.