GSK takes sole responsibility for ofatumumab autoimmune disease development
GSK and Genmab have amended their ofatumumab agreement. GSK will now solely lead the drug's development for autoimmune indications, receiving a £90 million upfront payment.
GSK plc and Genmab A/S have amended their co-development and commercialisation agreement for ofatumumab. Under the new terms, GSK will assume sole responsibility for developing ofatumumab in autoimmune indications. The companies will continue their joint development of the drug for oncology indications.
Genmab will receive an upfront payment of £90 million (DKK 815 million) from GSK. Genmab's future funding commitment for the oncology development program will be capped at a total of £145 million (DKK 1,314 million). Genmab will forgo development milestones for autoimmune indications and the first two sales milestones, while retaining a double-digit royalty on sales.
GSK plans to initiate several Phase II clinical studies for ofatumumab in autoimmune indications. The company will solely fund the development in these areas, citing a significant unmet medical need. GSK's R&D Senior Vice President, Ian Tomlinson, stated the company's biopharmaceutical capabilities and therapy area expertise will facilitate this development.
The amendment is expected to have a material impact on Genmab's 2010 financial guidance. Both companies highlighted that the agreement will ensure the optimal value extraction from ofatumumab and strengthen Genmab's financial security.