Immunomedics Receives Third Milestone Payment From Nycomed of $10M

Immunomedics IMMU today announced the receipt of $10 million from Nycomed relating to a milestone for the clinical development of veltuzumab in rheumatoid arthritis. Nycomed has the worldwide rights to develop, manufacture and commercialize veltuzumab, in the subcutaneous formulation, for the treatment of all non-cancer indications. Commenting on the event, Gerard G. Gorman, Senior Vice President, Finance and Business Development, and Chief Financial Officer of Immunomedics stated, "We are pleased with this cash payment, which will be used to fund our ongoing R&D programs. Nycomed has made significant progress with veltuzumab's development and we are pleased with their efforts." "This milestone payment is in addition to the potential non-dilutive financing opportunities we are currently working on," he added. This is the third milestone payment received by the Company from Nycomed. Under the terms of the license and collaboration agreement, entered into on July 11, 2008, Immunomedics could potentially receive up to $580 million from Nycomed upon achievement of certain clinical, regulatory, and sales-based milestones. The agreement also provides the Company with escalating double-digit royalties on net sales of veltuzumab.