ImmunoGen, Inc. (NASDAQ:IMGN) recently signed a licensed deal with Japan-based Takeda Pharmaceutical Co Ltd (ADR) (OTCMKTS:TKPYY). With this deal, Takeda has received the exclusive rights to make use of the Antibody Drug Conjugates technology of ImmunoGen for developing cancer therapies. These therapies can be developed by the Japanese firm for around two targets, both of which have not been disclosed yet.
Financial terms of the deal
Takeda paid an upfront amount of $20 million to ImmunoGen for the same. At the same time, it shall get milestone payments, which are anticipated to be totalled at or around $210 million. Royalties arising from the sale will also be given to ImmunoGen. As per the agreement, Takeda might also seek license for the third undisclosed location, by paying the extra upfront fee. Manufacturing, development as well as marketing of all ADC products shall now be done by Takeda.
The ADC technology surrounding deal
At present ImmunoGen, Inc. (NASDAQ:IMGN) produces a technology, which includes antibody drug conjugates technology (ADC). This in turn kills the cancerous cells by targeting them. The advantage of this technology is that it targets just the cancer cells, while ensuring that the healthy cells remain intact. The unconventional chemotherapy has been used as of now, but it works by destroying not just the cancerous cells, but also the healthy ones.
Agreement for meeting the oncology needs
The ImmunoGen ADC technology proves to be of utmost importance in serving the needs of oncology that hasn’t been dealt with, as of now. Takeda’s Christopher Claiborne believes that this agreement will enable their company to leverage the ADC technology, by combining it with its own R&D program. ImmunoGen has been creating and enhancing its portfolio of technology for meeting the needs of oncology. ADC is the proprietary technology of company, which leads to a creation of optimum ADC design for targeting each and every cancer.