AZ in strategic alliance with Abgenix to develop antibody therapeutics for cancer

Global pharma manufacturer AstraZeneca has entered into a strategic alliance with California-based biopharmaceutical company Abgenix.

The aim of the broad collaboration is to discover, develop and commercialise fully human monoclonal antibodies to treat cancer. AZ is investing US$100m in Abgenix convertible preferred stock, initially convertible into Abgenix common stock at $30 per share.

The alliance involves the joint discovery and development of therapeutic antibodies for up to 36 cancer targets to be commercialised exclusively world-wide by AstraZeneca. For these products, Abgenix will receive milestone payments at various stages of development and royalties on future product sales. In addition, the collaboration will involve the selection and development of an additional pool of antibodies by Abgenix, which the companies may elect to develop further on an equal cost and profit sharing basis.

For those product candidates for which AZ holds exclusive commercialisation rights, Abgenix will conduct early clinical trials, process development and clinical manufacturing, as well as commercial manufacturing during the first five years of commercial sales.

AZ may select initial antibodies from Abgenix's existing preclinical oncology portfolio and both companies will also propose additional targets for selection. AstraZeneca will be responsible for late stage clinical development of the portfolio and will hold worldwide commercialisation rights for any resulting products. Upon commercialisation, royalties will be paid to Abgenix on sales of products that result from the collaboration.

The alliance also includes a co-development component under which Abgenix will generate additional antibody product candidates that AstraZeneca will have the option to co-develop with Abgenix.

However, the collaboration does not encompass Abgenix's lead candidate ABX-EGF or any other products that are already in the clinic.

'This alliance adds to our proven expertise with small molecules and has the potential to significantly broaden and strengthen AstraZeneca's oncology pipeline,' said Sir Tom McKillop, ceo of AstraZeneca.

This represents an opportunity for accelerated growth for AstraZeneca, he added. 'In my view great big deals are not the way forward. We will maintain discipline and invest is those things that are sensible.'