From as long back as 1998, both Lisa Drakeman and her husband (then both at Mederex) always reminded me to con artists. He was kicked out from MDRX, and now, she was conned from Genmab.
Sorry, just a minor nit to pick with your post. Medarex was MEDX. MDRX was and still is Allscripts-Mysis a HIT co. that I've been in and out of over the years.
[This amendment has several moving parts; GSK is assuming all rights to ofatumumab in autoimmune indications and is reducing the milestones payable to Genmab in cancer indications by 50% in return for a one-time payment of $137M and other concessions.
Perhaps Lisa Drakeman was ousted as CEO two weeks ago (#msg-51295480) because she was opposed to this change.]
LONDON and COPENHAGEN, Denmark, July 1 /PRNewswire-FirstCall/ -- GlaxoSmithKline (NYSE and LSE: GSK) and Genmab A/S (OMX: GEN) announced today an amendment to the ofatumumab co-development and commercialisation agreement. Under the terms of the amendment, GSK will take responsibility for developing ofatumumab in autoimmune indications whilst continuing to jointly develop ofatumumab with Genmab in oncology indications.
Genmab will receive an upfront payment of GBP 90 million (DKK 815 million)[$137M at the current exchange rate]. Genmab's future funding commitment for the development of ofatumumab in oncology indications will be capped at a total of GBP 145 million (DKK 1,314 million)[$221M], including a yearly spending cap of GBP 17 million (DKK 154 million) for each of the next six years starting with 2010. Future milestones due to Genmab under the oncology development programme will be reduced by 50%. There will be no change in royalty tiers to Genmab in the oncology programme.
GSK is currently planning a number of Phase II clinical studies to take ofatumumab forward in autoimmune indications. "Autoimmune diseases represent an area of high unmet medical need. GSK's growing biopharmaceutical capabilities coupled with our deep therapy area expertise will greatly facilitate the development of ofatumumab in these indications," said Ian Tomlinson, Senior Vice President, Biopharmaceutical R&D, GSK. GSK will be solely responsible for funding the development in these indications. As a result, Genmab will forego development milestones for autoimmune indications and the first two sales milestones while retaining a double digit royalty on sales.
"The amendment to the ofatumumab agreement clearly highlights Genmab and GSK's commitment to further develop this important product," said Prof. Jan G.J. van de Winkel, Ph.D., Chief Executive Officer Genmab. "We have a really excellent partner in GSK. Their flexibility has allowed us to not only ensure that we extract the best possible value from ofatumumab, but also strengthen the financial security of Genmab."
The amendment to the ofatumumab agreement is expected to have a material impact on Genmab's 2010 financial guidance which will be updated with the company's second quarter report on 17 August 2010.‹
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