Company to Receive $65 Million Payment
WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 8, 2019--
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.
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.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190108005924/en/
Source: ImmunoGen, Inc.
THRUST Strategic Communications
Courtney O’Konek, 781-895-0600
Robert Stanislaro, 212-850-5657