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GlaxoSmithKline Purchasing Genmab`s Leukemia Drug

Europe`s largest pharmaceutical company GlaxoSmithKline has purchased the international rights to a new drug developed to treat Leukemia from the Danish biotech company Genmab for $2.1 billion. Annalists have said that the deal is worth far more than was anticipated, which might mean that Genmab may inter into profitability. Genmab shares, which are traded in Copenhagen`s stock exchange, have jumped 14% to $68 a share, once the news of the deal was made public.

The drug sold is HuMax-CD20, which is an experimental antibody in the final stages of development. The drug is currently in phase 3 clinical trials for the treatment of Leukemia, Lymphoma and Arthritis. The drug`s NHL Phase 3 trial with HuMax-CD20, begun in July, and involves about 162 patients who are refractory to either the anti-CD20 antibody Rituxan in combination with chemotherapy or as maintenance treatment.

Lisa Drakeman, Genmab`s CEO, said: ?This alliance puts the tremendous strength of GSK`s development, sales and marketing expertise behind HuMax-CD20,? She added that she is certain the drug will lead to a profit of more than $2 billion annually. "there will be pre-filing milestones and, while there are some post-commercialization milestones, they certainly are not the majority," Drakeman said that GSK would take over the manufacturing of the drug, which is a "tremendous commitment," as Drakeman put it. She said options were evaluated "through the entire range of deal terms," and Genmab accomplished its goal. "We believe we`ve retained half the value of the product altogether," she said.