Lilly Unites With ImmunoGen In ADC Deal Worth Up To $1.7B

ImmunoGen Inc IMGN has struck a multi-target license deal with Eli Lilly And Co LLY to grant exclusive rights to research, develop, and commercialize antibody-drug conjugates (ADCs) directed to targets selected by Lilly based on ImmunoGen's camptothecin technology.

• Camptothecins are an important class of anticancer drugs targeting Type I topoisomerase.
• According to the deal, Lilly will pay ImmunoGen an upfront payment of $13 million, reflecting initial targets selected by Lilly.
• Lilly may select a pre-specified number of additional targets, with ImmunoGen eligible to receive an additional $32.5 million in exercise fees if Lilly licenses the full number of targets.
• Related: ImmunoGen Shares Rally After Ovarian Cancer Trial Meets Primary Endpoint Goal.
• ImmunoGen can receive up to $1.7 billion in potential target program exercise fees and milestone payments.
• ImmunoGen is also eligible for tiered royalties as a percentage of worldwide commercial sales by Lilly. 
• Lilly is responsible for all costs associated with research and development.
• ImmunoGen retains full rights to the camptothecin platform for all targets not covered by the Lilly license.
• Price Action: IMGN stock is up 5.14% at $5.83, and LLY shares are up 3.40% at $242.66 during the market session on the last check Tuesday.