* Lundbeck's new research strategy emphasizes the need for access to human antibody technology as a tool to address targets inaccessible by small molecules
* Lundbeck sees Genmab to be the right company in this space to partner with
* Lundbeck will gain access to Genmab's UltiMab technology allowing us to pursue valuable CNS targets otherwise not accessible
H. Lundbeck A/S (Lundbeck) announced today an agreement to create and develop human antibody therapeutics for disorders of the central nervous system (CNS) with Genmab A/S (Genmab).
Following the agreement, Genmab will create novel human antibodies to a defined number of targets identified by Lundbeck. Lundbeck will have access to Genmab's antibody creation and development capabilities, including its state of the art, fully automated pre-clinical antibody screening and characterization capabilities and its proprietary stabilized IgG4 and UniBody therapeutic antibody platforms. Furthermore, Lundbeck will have an option to take selected antibodies into clinical development at its own cost and subject to the payment of milestones and single digit royalties to Genmab upon successful development and commercialization. Additionally, Genmab will have a similar option to take selected antibodies into clinical development for certain non-CNS indications at its own cost and subject to the payment of milestones and single digit royalties to Lundbeck.
Under the terms of the agreement, Genmab will receive an upfront payment of EUR 7.5 million (approximately DKK 56 million). Lundbeck will fully fund the development of the antibodies. If all milestones in the agreement are achieved, the total value of the agreement to Genmab would be approximately EUR 38 million (approximately DKK 283 million), plus single digit royalties
"We are pleased to enter into this collaboration with Lundbeck, world experts in the development of CNS therapeutics. It gives Genmab the opportunity to leverage our antibody technology and expertise and to expand our pipeline into a new and exciting therapeutic area without assuming a financial obligation," said Jan van de Winkel, Chief Executive Officer of Genmab.
"Genmab's broad antibody development expertise and Lundbeck's knowledge in CNS disorders is an ideal combination for developing new treatments in this important therapeutic area," said Peter Høngaard Andersen, Executive Vice President, Head of Research at Lundbeck. "The new partnership follows Lundbeck's new R&D strategy to ensure we have the most efficient platform for the future discovery and development of drugs that will be able to help and treat biologically defined groups of patients with brain diseases. It is this type of drugs we expect will be in demand in the future".
Financial guidance
The content of this release will have no influence on the Lundbeck Group's financial guidance for 2010 which was provided on 4 March 2010 in connection with the release of the financial results for 2009.