On July 31, 2003, we announced that ImmunoGen and Aventis entered into
a collaboration to discover, develop, and commercialize novel antibody-based
anticancer products. ImmunoGen and Aventis will collaborate to create
these products using targets provided by both companies. Aventis is the
seventh largest pharmaceutical company in the world and a global leader
in oncology.
Under this agreement, ImmunoGen received an upfront payment of $12 million
and is to receive more than $50 million in committed research funding
over a three-year period. Aventis can extend the research collaboration
for one to two years. Extension of the collaboration could bring the total
committed funding to ImmunoGen up to $99 million.
Additionally, for each product within the collaboration, ImmunoGen is
to receive milestone payments upon specified development and regulatory
achievements. The potential milestone payments per product
total between $21.5 million and $30 million depending on the product.
ImmunoGen is to receive royalties on the sales of each collaboration product
commercialized. Aventis is responsible for product development, manufacturing,
and commercialization, and will cover all such costs for the life of the
product.
The agreement grants Aventis the worldwide commercialization rights to
the new product candidates created by the collaboration and to three early-stage
product candidates in ImmunoGens research pipeline: huMy9-6-DM1,
our anti-IGF-IR antibody, and our product candidate for certain B-cell
blood cancers including non-Hodgkins lymphoma. ImmunoGen has an
option to certain co-promotion rights in the United States on a product-by-product
basis.
We expect this collaboration with Aventis to yield substantially more
products that provide a return to ImmunoGen than we could have achieved
on our own. Additionally, it enables us to expand our activities in the
development of naked (unconjugated) antibody therapeutics and to enhance
our TAP effector molecule program. We plan to continue to use partnerships
including out-licensing our TAP technology to provide ImmunoGen
with additional cash and to broaden our product opportunities.
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