Seattle Genetics invests in embattled Immunomedics

Seattle Genetics will pay up to $2 billion to license IMMU-132, the lead antibody-drug conjugate being developed by Immunomedics. The deal includes $250 million up front for licensing as well as $15 million for a nearly 3% equity stake in the New Jersey-based firm. In return, Seattle Genetics will take on development, manufacturing, and commercialization of sacituzumab govitecan (IMMU-132), which targets TROP-2 in several solid tumors. IMMU-132 is in a Phase I/II trial for breast cancer and has breakthrough therapy designation from FDA. The deal comes at a time when Immunomedics’ lead shareholder, the venture capital firm venBio, is seeking to replace board members and eventually oust Immunomedics founder and chair David Goldenberg and his wife, CEO Cynthia Sullivan. VenBio sees the Seattle Genetics deal as a tactic to delay the outcome of a shareholder vote. VenBio has filed a motion in the Delaware Court of Chancery for an injunction to stop Immunomedics from closing the deal until a new board is elected that can review it and other options.