Genmab A/S, a publicly traded, international biotechnology company, has entered into a global license and development agreement for daratumumab (HuMax-CD38), a human CD38 monoclonal antibody with Janssen Biotech, Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson (Janssen).

Daratumumab is currently in development for multiple myeloma and may have potential in other cancer indications such as acute myeloid leukaemia.  Under the terms of the agreement, Genmab will grant Janssen an exclusive worldwide license to develop and commercialize daratumumab as well as a backup human CD38 antibody.

Under the terms of the agreement, Genmab will receive an upfront license fee of $55 million (approximately DKK 327 million) and Johnson & Johnson Development Corporation (JJDC) will invest DKK 475 million, (approximately $80 million) to subscribe for 5.4 million new shares of Genmab at a price of DKK 88 per share. Genmab's closing share price on August 29, 2012 was DKK 67.85. Genmab could also be entitled to up to $1 billion in development, regulatory and sales milestones, in addition to tiered double digit royalties.  Janssen will be fully responsible for all costs associated with developing and commercializing daratumumab going forward, including the costs of two ongoing phase I/II studies.

"Janssen was one of the first companies to recognize the power and promise of monoclonal antibodies and today is a world leader in biologics; we look forward to applying that same expertise to daratumumab to help meet the needs of patients with multiple myeloma," said William N. Hait, M.D., Ph.D., Head of Janssen Research & Development, LLC.  "Daratumumab is an exciting, innovative compound, and we are delighted to add it to our portfolio."

"We are very pleased to partner with Janssen on another Genmab innovation and look forward to working with them to accelerate the development of daratumumab and to maximize the value of this product," said Jan van de Winkel, Ph.D., chief executive officer of Genmab.  "This agreement significantly strengthens our financial position, ensuring that Genmab can continue to develop much needed differentiated antibody therapeutics to help cancer patients in the future."

The transaction is subject to customary closing conditions, including approval of a prospectus by the Danish Financial Supervisory Authority and clearance by the US antitrust authorities under the Hart-Scott-Rodino Act, and will become final as soon as these conditions have been met.

Daratumumab is a human CD38 monoclonal antibody with broad-spectrum killing activity. Daratumumab is in clinical development for multiple myeloma (MM). Daratumumab targets the CD38 molecule which is highly expressed on the surface of multiple myeloma cells. Daratumumab could also have potential in other tumours on which CD38 is expressed.

Genmab is a publicly traded, international biotechnology company specializing in the creation and development of differentiated human antibody therapeutics for the treatment of cancer.