By Matthew Willett
Medarex Inc. and Schering-Plough Corp. entered a research alliance to develop fully human antibodies against multiple disease targets identified by Schering-Plough.
The agreement gives Kenilworth, N.J.-based Schering-Plough options on exclusive commercial rights to pharmaceuticals that come from the collaboration, and Medarex, of Princeton, N.J., will receive license fees, milestone payments and royalties on commercial sales.
Further details on the terms of the agreement and the therapeutic areas of focus were not disclosed.
Medarex plans to use its UltiMAb human antibody development system to create antibodies from the Schering-Plough targets.
That technology enables Medarex to develop fully human high-affinity monoclonal antibody-based therapeutics to fight cancer and other debilitating diseases using HuMAb-Mouse transgenic mice.
Medarex CEO Donald Drakeman said the deal is the 32nd to utilize the UltiMAb technology.
"This is another terrific opportunity for Medarex to partner with a leading pharmaceutical company in the development of novel therapeutic products," Drakeman told BioWorld Today. "They now have the opportunity to access our UltiMAb development system to create fully human antibodies to a wide range of different kinds of disease targets. They'll develop the product, pay us a license fee, milestones and royalties, and we'll participate in their successful development."
To date, Medarex has collaborated on the development of more than 60 therapeutic targets using the UltiMAb technology. Drakeman said the therapeutic areas cover all the bases.
"Right now there are three human antibodies in the clinic, one in cancer, one in rheumatoid arthritis and one in inflammation, and I think that's a pretty good example of the breadth of possibilities," he said. "There is really a wealth of areas for which human antibodies could be used, and I think it's fair to say that we, or our partners, are working on most of them."
In 2000, Medarex reported revenues of $22.5 million. Of that revenue, grants, contract and license revenues from deals like this one accounted for $21.2 million.
In December, Medarex filed with the SEC, registering for the sale of $500 million worth of stock, warrants or debt securities. It said then it would use the funding for repaying debts, making additions to its working capital or funding future acquisitions. As of Dec. 31, Medarex had about $343.6 million in cash, cash equivalents and marketable securities.
In October, Medarex joined up with ZymoGenetics Inc., of Seattle, to work on fully human antibody therapeutics and, separately, increased its ownership percentage of Paris-based Immuno-Designed Molecules SA from 6 percent to 34 percent. (See BioWorld Today, Oct. 20, 2000, and Oct. 24, 2000.)
In all, Medarex entered 12 corporate partnerships in 2000. The financial terms of the partnerships typically include license fees and milestone payments.
Medarex's stock (NASDAQ:MEDX) rose on the news Thursday, gaining 31.25 cents to close at $15.50. n