Seattle Genetics, a biotech company focused on development and commercialization of innovative antibody-based therapies for cancer, and Genmab, a Denmark-based international biotech company specializing in differentiated human antibody therapeutics for cancer, have entered into an additional antibody-drug conjugate (ADC) collaboration.

Genmab will pay an upfront fee of $11 million for exclusive rights to utilize Seattle Genetics’ auristatin-based ADC technology with Genmab’s HuMax-AXL, an antibody targeting AXL that is expressed on multiple types of solid cancers. Seattle Genetics also is entitled to receive more than $200 million in potential milestone payments and mid-to-high single-digit royalties on worldwide net sales of any resulting products.

In addition, prior to Genmab’s initiation of a phase III study for any resulting products, Seattle Genetics has the right to exercise an option to increase the royalties to double digits in exchange for a reduction of the milestone payments owed by Genmab. Irrespective of any exercise of option, Genmab remains in full control of development and commercialization.

Seattle Genetics and Genmab entered into an ADC collaboration for HuMax-TF-ADC in September 2010. HuMax-TF-ADC, targeting the Tissue Factor antigen, is in a phase I trial for solid tumors. Seattle Genetics has the right to exercise a co-development option to share all future costs and profits for HuMax-TF-ADC at the end of phase I.