Seagen in licensing deal with Lava Therapeutics for cancer candidate

Sep. 26, 2022 8:18 AM ETSeagen Inc. (SGEN)MRK, LVTXBy: Dulan Lokuwithana, SA News Editor1 Comment

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  • Seagen Inc. (NASDAQ:SGEN) announced a license agreement with Dutch biotech LAVA Therapeutics N.V. (LVTX) on Monday for preclinical candidate LAVA-1223 which is designed to target epidermal growth factor receptor (EGFR)-expressing solid tumors.
  • Per the terms, SGEN will pay $50M upfront to LAVA to receive an exclusive worldwide license for LAVA-1223 which uses the latter's proprietary Gammabody technology.
  • The deal also includes up to about $650M milestone payments and royalties on future sales in the range of single digits to the mid-teens.
  • Additionally, the agreement gives SGEN, which focuses on antibody-drug conjugates for cancer, exclusive rights of negotiation to apply LAVA's Gammabody platform on up to two additional tumor targets.
  • LVTX shares have added ~113% pre-market in reaction to the deal, and SGEN is trading flat.
  • SGEN, which was rumored to have attracted buyout interest from Merck (MRK), lost in value in recent days as M&A prospects cooled.

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