Medarex to get as much as $510 million in Pfizer deal
that will provide for the discovery and development of up to 50
antibody products over ten years including the creation of fully
human antibody products in a variety of indications that will
address several areas of unmet medical need.
The two companies are also expected to agree the cross-licensing of the patents relating to Pfizer's anti-CTLA-4 antibody program, it's creation of a completely novel compound to battle cancer.
Under the terms of the agreement, Pfizer will make an initial cash payment to Medarex of $80 million (€65.7 million). Pfizer are also to purchase $30 million of Medarex's common stock at a premium to the market price.
Medarex will incorporate its UltiMab human antibody technology to create product candidates to disease-associated targets identified by Pfizer. Pfizer will be responsible for the development and commercialisation of any products generated by the collaboration.
Medarex could receive research funding, license fees and milestone payments, if certain milestones are met, exceeding $400 million if all 50 products obtain regulatory approval, as well as royalties on any commercial sales of the products.
Medarex has been conducting research on antibody-based treatments for cancer, inflammatory diseases, immune system diseases and infectious diseases. The company said 19 experimental products using Medarex technology are now in clinical trials.
Both companies are independently pursuing the clinical testing of antibodies to CTLA-4, including Medarex's MDX-010 and Pfizer's CP-675,206. Medarex and Pfizer have retained the commercial rights to their separate anti-CTLA-4 products.
Antibodies are part of a class of proteins called immunoglobulins. Antibodies are produced by the body's immune system to fight off foreign substances called antigens. Companies such as Medarex are developing versions of antibodies that can act as targeted therapies against specific diseases.
