Updated from 11:52 am. EDT
stock rose 7% by Monday afternoon on news that the biopharmaceutical company had struck a second deal with
as the quest to cure cancer continues unabated.
The shares rose 13/16 to 12 3/8 after rising 10% Friday when ImmunoGen announced an
. (ImmunoGen finished up 7/16, or 4%, at 12.)
Genentech agreed to pay $3 million for five years of access to ImmunoGen's maytansinoid tumor-activated prodrug technology in its antibody research efforts. The ImmunoGen product can be combined with various antibodies to kill cancer cells more efficiently.
Genentech will be responsible for manufacturing, product development and the marketing of any products developed through the collaboration and will also pay ImmunoGen as much as nearly $40 million per antibody, assuming that certain benchmarks, including clinical research milestones, are met.
It is unclear which specific cancers will be targeted. "It's up to Genentech to choose which antibodies they will work with," said Mitchel Sayare, chairman and chief executive of ImmunoGen, in an interview. The choice of antibody will determine the target disease. At the moment, Genentech is not disclosing any specifics. "This is a very broad-based agreement," said Sabrina Johnson, a spokeswoman for Genentech. "Any cancer could be part of this collaboration."
"The Genentech deal is sort of what we're looking to do with this," said Sayare. "We have an enabling platform and other companies are working on antibodies. Will they work better as naked antibodies or with our product?" He said the company hopes to announce more deals this summer.
ImmunoGen struck a separate deal with Genentech Thursday, where Genentech said it had paid $2 million for the exclusive rights to market an anti-cancer drug for use with Genentech antibodies like Herceptin.
Shares of Genentech rose 4, or 3%, to 127 15/16 in Monday afternoon trading. (Genentech finished up 7 9/16, or 6%, at 131 1/2.)