ImmunoGen Announces Sale of Residual Kadcyla Royalties
January 08 2019 - 4:01PM
Business Wire
Company to Receive $65 Million Payment
ImmunoGen, Inc. (Nasdaq: IMGN), a leader in the expanding field
of antibody-drug conjugates (ADCs) for the treatment of cancer,
today announced the sale of its residual rights to receive royalty
payments on commercial sales of Kadcyla® (ado-trastuzumab
emtansine) to OMERS, the defined benefit pension plan for municipal
employees in the Province of Ontario, Canada, for $65 million.
“ImmunoGen played a key role in the generation and early
development of Kadcyla, the first ADC approved for the treatment of
HER2-positive breast cancer, and we are pleased to see the
continued progress of this important therapy in the market,” said
Mark Enyedy, President and Chief Executive Officer. “As ImmunoGen
evolves into a fully-integrated company with our proprietary
portfolio, this transaction further strengthens our balance sheet
as we execute on our strategic priorities and work to deliver more
good days to people living with cancer.”
This transaction entails the sale of the residual interest held
by ImmunoGen from a prior transaction with Immunity Royalty
Holdings, L.P. (IRH). In 2015, ImmunoGen announced a $200 million
non-dilutive royalty transaction through which ImmunoGen sold the
right to receive 100% of the royalty revenue on Kadcyla commercial
sales to an undisclosed threshold amount, subject to certain
conditions. Once the applicable threshold was met, ImmunoGen would
receive 85% of the Kadcyla royalty revenue and the original
purchaser would receive 15% for the remaining term of the royalty.
With this transaction, OMERS now owns 100% of ImmunoGen’s rights to
receive Kadcyla royalties.
MTS Health Partners, L.P. acted as exclusive financial advisor
to ImmunoGen and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo,
P.C. acted as special transactional counsel to ImmunoGen.
ABOUT KADCYLA ROYALTIES
Genentech, a member of the Roche Group, developed Kadcyla
(ado-trastuzumab emtansine) using ADC technology licensed from
ImmunoGen under a 2000 agreement established between the companies.
This agreement entitles ImmunoGen to receive royalties ranging from
3-5% on Kadcyla sales in countries where ImmunoGen holds valid
patents covering Kadcyla, and 2% in countries without relevant
ImmunoGen patents. ImmunoGen is entitled to receive royalties on
commercial Kadcyla sales in each country for ten years after the
launch of Kadcyla in that country. This period extends to twelve
years for each country in which ImmunoGen has valid claims in
relevant patents on the tenth anniversary of the commercial launch
of Kadcyla in that country.
ABOUT OMERS
Founded in 1962, OMERS is one of Canada’s largest defined
benefit pension plans, with more than $95 billion in net assets, as
at December 31, 2017. It invests and administers pensions for
almost half a million members from municipalities, school boards,
emergency services, and local agencies across Ontario. OMERS has
employees in Toronto and other major cities across North America,
the U.K., Europe, Asia, and Australia – originating and managing a
diversified portfolio of investments in public markets, private
equity, infrastructure, and real estate. For more information,
please visit www.omers.com.
ABOUT IMMUNOGEN
ImmunoGen is developing the next generation of antibody-drug
conjugates (ADCs) to improve outcomes for cancer patients. By
generating targeted therapies with enhanced anti-tumor activity and
favorable tolerability profiles, we aim to disrupt the progression
of cancer and offer our patients more good days. We call this our
commitment to “target a better now.” Our lead product candidate,
mirvetuximab soravtansine, is in Phase 3 study for folate receptor
alpha (FRα)-positive platinum-resistant ovarian cancer, and in
Phase 1b/2 testing in combination regimens. Our novel IGN
candidates for hematologic malignancies, IMGN779 and IMGN632, are
in Phase 1 studies.
Learn more about who we are, what we do, and how we do it at
www.immunogen.com.
This press release includes forward-looking statements. For
these statements, ImmunoGen claims the protection of the safe
harbor for forward-looking statements provided by the Private
Securities Litigation Reform Act of 1995. It should be noted that
there are risks and uncertainties related to the development of
novel anticancer products, including risks related to preclinical
and clinical studies, their timings and results. A review of these
risks can be found in ImmunoGen's Annual Report on Form 10-K for
the fiscal year ended December 31, 2017 and other reports filed
with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190108005924/en/
For InvestorsTHRUST Strategic CommunicationsChelcie
Lister, 910-777-3049chelcie@thrustsc.comorFor
MediaImmunoGenCourtney O’Konek,
781-895-0600courtney.okonek@immunogen.comorFTI Consulting
Inc.Robert Stanislaro,
212-850-5657robert.stanislaro@fticonsulting.com
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