Genentech sheds $860M Seattle Genetics pact

Roche has shed yet another development partnership deal. This time its subsidiary Genentech dropped a collaboration with Seattle Genetics on the cancer drug dacetuzumab--or SGN-40. Seattle Genetics -- which reportedly earned $60 million on the deal but leaves more than $800 million on the table -- says the decision was the result of a product review at Genentech, which now operates under the wing of Roche.

Earlier this week, Roche dropped out of partnerships with both Genmab and Actelion. With Roche and Genentech both reviewing pipeline projects in the wake of their multibillion-dollar merger, there are likely some nervous partners out there wondering where the axe will fall next.

Dacetuzumab is in trials for non-Hodgkin's lymphoma and multiple myeloma. "We will evaluate available data as we consider possible next steps for the dacetuzumab program," Seattle Genetics Chief Executive Clay Siegall says in a statement. "We remain focused on advancing our lead product candidate, brentuximab vedotin (SGN-35), which we are positioning for a potential new drug application in 2011, as well as multiple other clinical and preclinical programs in our portfolio."

- here's the story from Dow Jones
- check out Seattle Genetics' release