ImmunoGen To Collaborate With Lilly On Cancer Drugs

   DOW JONES NEWSWIRES 

ImmunoGen Inc. (IMGN) agreed to a collaboration with Eli Lilly & Co. (LLY) potentially valued at roughly $220 million in which the pharmaceutical giant will get exclusive licensing rights to some of the drug developer's antibody-based cancer therapies.

A number of major pharmaceutical companies have been taking steps to fill their pipelines as they cope with a patent cliff, including such collaborations with smaller drug developers.

Under the agreement, ImmunoGen will receive an upfront payment of $20 million. Each license entitles ImmunoGen to receive milestone payments potentially totaling $200 million as well as royalties on any products that result from the collaboration.

ImmunoGen's maytansinoid targeted antibody payload technology is designed to deliver cancer-fighting drugs directly to tumor cells.

The company has collaborative agreements with several other major drug makers including Amgen Inc. (AMGN), Novartis AG (NVS, NOVN.VX) and Sanofi SA (SNY, SAN.FR).

Shares of ImmunoGen and Lilly closed Monday at $11.36 and $40.74, respectively. Neither were active premarket.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]