Seattle Genetics pulls out of $2 billion bid for cancer drug

Bothell-based Seattle Genetics, the region’s biggest biotech firm, spiked a $2 billion deal to manfuacture and distribute an experimental tumor fighting drug.

The company announced in February that it had reached a deal with New Jersey-based Immunomedics for exclusive worldwide rights to develop IMMU-132, which could fight tumors in breast, lung and bladder cancers. Seattle Genetics agreed to pay $250 million upfront, with licensing payments potentially reaching as much as $2 billion.

A large shareholder in Immunomedics, venBio Select Advisor thought the deal undervalued the anti-cancer drug. In March, it filed a lawsuit to block the agreement.

Last week, shareholders led by venBio ousted the husband-and-wife team leading Immunomedics and approved a plan for the company to make and distribute IMMU-132.

The deal would be “nice to have,” but is “not a must have,” Seattle Genetics’ chief operating officer Eric Dobmeier said, according to Seeking Alpha, an investment news website.

Seattle Genetics has grown substantially in recent years, and expects to grow further in the next few years.

The company will focus its “full attention and resources to our promising pipeline and the substantial opportunities in front of us,” chief executive officer Clay Siegall said.

Its current product, Adcetris, could soon become a go-to drug for treating one of the main types of lymphoma. Seattle Genetics expects to bring several drugs to market in the next few years. The company plans to add 200 employees this year, raising its workforce to more than 1,100.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

More in Business

Courtesy photo 
                                Mercer Island financial adviser Bob Toomey recently summited Mount Shasta in California.
Financial success and mountaineering

The steps to achieving financial success mirror mountain climbing.

The new Bothell Friday Market will run from 3-8 p.m., every Friday through Sept. 27. Stephanie Quiroz/staff photo
New Bothell Friday Market opens

Bothell Friday Market will run every Friday through Sept. 27

Kiddie Academy locations on the Eastside win national recognition

Six locally owned educational child care centers received an award for brand excellence and customer service.

Selection and steady sales characterize local market

Buyers can enjoy additional selection this summer as they look for the home of their choice.

The Bothell Kenmore Chamber of Commerce honored the Country Village owner as member of the month after it closed at the beginning of June. Kailan Manandic / staff photo
Eastside business booms with summer options

Locals can visit numerous new developments this summer, all within Eastside communities.

First & Main Design Market offers a broad assortment of vintage and artisan built furniture pieces. Each piece is specifically and carefully selected. Stephanie Quiroz/staff photo
First & Main Design Market opens in Bothell

The new destination store offers retail furniture, vintage treasures, and professional interior design services.

Just Get Me Started founder Suzanne Tseng participates in one of the weekly workshops that taught locals how to create intricate chalk art.
Kenmore’s Tseng helps locals ‘just get started’

Suzanne Tseng launched her business Just Get Me Started to help locals pick up hobbies and skills.

From left: Craig Olson, Joan Schrammeck, and Paula Paula DelGiudice with a solar panel. Stephanie Quiroz/staff photo
Little Bit in Redmond goes solar

Northwest Electric and Solar (NWES) of Kenmore donates a solar energy system to the therapeutic riding center.

Microsoft reveals project criteria for $500 million affordable housing funds

The company will soon accept applications for projects related to affordable housing on the Eastside.

Local real estate market brings more opportunities for buyers

Homebuyers are also benefiting from lower interest rates, which are currently are less than four percent.

Maurita Colburn, the chamber’s Member and Community Relations manager, welcomes Country Village owner Leeann Tesorieri as she receives a standing ovation from local business owners. Kailan Manandic/staff photo
Bothell Kenmore Chamber honors Country Village

The chamber awarded Country Village owner, Leeann Tesorieri, as member of the month.

Kailan Manandic/staff photo 
                                Bothell’s newest animal hospital opens with a joint celebration hosted by the Bothell Kenmore Chamber of Commerce.
Twin Pines Animal Hospital offers new vet services in Bothell

The animal hospital had been operating in the community for years before opening a new location.