After the agreement last February  to pay $250 million to license a potential solid-tumor drug (sacituzumab govitecan or IMMU-132) developed by Immunomedics,  Seattle Genetics has abandoned the deal after a shareholder revolt at  biotechnology company which led its founder and his wife, Immunomedics CEO, to sterp down. Michael R. Garone, the current chief financial officer of Immunomedics, will then assume the role of interim CEO.

If the deal would have gone forward future milestone and royalty payments could have pushed the total to $2 billion, the companies said.

Immonomedics has raised $125 million to fund the drug’s development on its own. 

Seattle Genetics President and CEO Clay Siegall on the closed deal said “The Immunomedics transaction would have effectively utilized our substantial expertise in antibody-drug conjugate (ADC) development to advance IMMU-132 for patients in need”  

“However, due to significant delays and lack of progress towards closing the deal, we are turning our full attention and resources to our promising pipeline and the substantial opportunities in front of us.”

Immunomedics shares jumped 17.56 percent Friday on the news, rising 95 cents for the day to close at $6.36. 

As part of the termination, Seattle Genetics will continue to hold 3.0 million shares of Immunomedics common stock, as well as a warrant to purchase an additional 8.7 million shares at $4.90 per share exercisable until the end of 2017

Source: The Seattle Times