Genmab, GSK amend ofatumumab deal

GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) will assume full responsibility for the development of ofatumumab in autoimmune indications after amending a 2006 co-development deal with Genmab A/S (CSE:GEN) for the mAb against CD20. In exchange, Genmab will receive a L90 million ($135.5 million) payment. The partners also will change the funding responsibilities for their joint development of ofatumumab in cancer indications. Genmab's total funding contribution in those indications will be capped at L145 million ($218.3 million), including a yearly spending cap of L17 million ($25.6 million) for the next six years. Genmab will forego all future development milestones and the first two sales milestones for autoimmune indications, while retaining a double-digit royalty on autoimmune sales. In cancer, Genmab's potential milestones will be reduced by 50%. Royalties from the cancer program will remain unchanged (See BioCentury Extra, Tuesday, Dec. 19, 2006). ...