Fenwick & West LLP advised Seattle Genetics, Inc. on the deal.
Seattle Genetics, Inc. (NASDAQ: SGEN) announced two strategic oncology collaborations with Merck (NYSE: MRK).
The companies will globally develop and commercialize Seattle Genetics’ ladiratuzumab vedotin, an investigational antibody-drug conjugate (ADC) targeting LIV-1, which is currently in phase 2 clinical trials for breast cancer and other solid tumors. Under the terms of the agreement, Seattle Genetics will receive a $600 million upfront payment and Merck will make a $1 billion equity investment in 5 million shares of Seattle Genetics common stock at a price of $200 per share. In addition, Seattle Genetics is eligible for progress-dependent milestone payments of up to $2.6 billion.
Separately, Seattle Genetics has granted Merck an exclusive license to commercialize TUKYSA
(tucatinib), a small molecule tyrosine kinase inhibitor, for the treatment of HER2-positive cancers, in Asia, the Middle East and Latin America and other regions outside of the U.S., Canada and Europe. Seattle Genetics will receive $125 million from Merck as an upfront payment and is eligible for progress dependent milestones of up to $65 million.
The Fenwick team handling the collaborations was led by life sciences partner Stefano Quintini (Picture), counsel Claire O’Callaghan, licensing attorney Amy Manning and antitrust & trade regulation partner Mark Ostrau.
Law Firms: Fenwick & West LLP;
Clients: Seattle Genetics Inc.;