Board battle scuppers Seattle Genetics’ $2 billion licensing deal
pharmafile | May 8, 2017 | News story | Sales and Marketing | Immunomedics, Seattle Genetics, venBio
In another example of the influence that activist investors can have on the direction of a business, the potentially $2 billion licensing deal between Seattle Genetics and Immunomedics has been called off. The about-turn happened as activist investors, venBio, within Immunomedics orchestrated a revolt against the deal, claiming the scalp of CEO Cynthia Sullivan and the founder of the company, David Goldenberg – who had worked as CSO and Chief Patent Officer.
venBio had argued that the deal between the two companies had been rushed through and did not represent value for money for shareholders. The legal battle had been on-going since the deal was agreed in February and it was venBio who emerged victorious, winning four seats on the board of the company whilst having legal fees and expenses reimbursed.
The drug at the heart of the licensing wrangle is IMMU-132, a potential treatment for cancer that has already received a Breakthrough Therapy Designation from the FDA. Immunomedics has since announced that it does not plan to apply to the FDA with the drug until late 2017, early 2018.
Seattle Genetics were forced to exit the deal to acquire licensing of the drug due to the intervention by venBio.
“The Immunomedics transaction would have effectively utilized our substantial expertise in antibody-drug conjugate (ADC) development to advance IMMU-132 for patients in need,” said Clay Siegall, President and Chief Executive Officer of Seattle Genetics. “However, due to significant delays and lack of progress towards closing the deal, we are turning our full attention and resources to our promising pipeline and the substantial opportunities in front of us, including the upcoming topline data readout from the ADCETRIS ECHELON-1 trial and ongoing or planned pivotal trials of vadastuximab talirine (SGN-CD33A) and enfortumab vedotin (ASG-22ME).”
Seattle Genetics retains 3 million share of Immunomedics, as well as having an option to purchase a further 8.7 million should they choose to by the end of this year.
Ben Hargreaves
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