Genmab A/S, a publicly traded, international biotechnology company specializing in the creation and development of differentiated human antibody therapeutics for the treatment of cancer,  has entered into an agreement with GlaxoSmithKline (GSK) and Novartis Pharma AG (Novartis) to transfer the ofatumumab collaboration with GSK to Novartis.  The transfer of the collaboration follows an April 2014 announcement in which Novartis, as part of a definitive agreement reached with GSK, agreed to acquire GSK's oncology products including ofatumumab (the GSK/Novartis Transaction). The transfer of the collaboration will only become effective upon closing of the GSK/Novartis Transaction, which is currently expected in the first half of 2015.

Upon transfer, Novartis would develop and commercialize ofatumumab in oncology indications and GSK would continue to develop and commercialize ofatumumab for autoimmune indications.  The parties have also agreed that Genmab would not be required to pay existing funding liabilities (approximately GBP 19 million (DKK 180 million)) or to fund research and development costs for ofatumumab beyond December 31, 2014.  In aggregate, this could reduce Genmab's funding commitment by up to GBP 60 million (DKK 570 million).

"The collaborations with Novartis and GSK for this innovative therapeutic antibody will help ofatumumab reach its fullest potential, while improving cash flows," said Jan van de Winkel, Ph.D., chief executive officer of Genmab.

Additionally, upon completion of the transfer of the collaboration, Genmab will be able to develop follow-on CD20 products including formats incorporating its proprietary DuoBody and HexaBody technologies.

The transfer of the collaboration will not impact Genmab's 2014 financial guidance.

Ofatumumab is a monoclonal antibody that is designed to target the CD20 molecule found on the surface of chronic lymphocytic leukaemia (CLL) cells and normal B lymphocytes.