Genmab — M&A Activity 2010

Jul 1, 2010

News Details

Ad-hoc | 1 July 2010 18:00

GlaxoSmithKline and Genmab Announce Amendment to Ofatumumab Agreement

Genmab A/S /

01.07.2010 18:00

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The issuer is solely responsible for the content of this announcement.

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Summary: GSK and Genmab announce an amendment to the ofatumumab co-development
and commercialization agreement.

Copenhagen, Denmark; July 1, 2010 - GlaxoSmithKline (GSK) and Genmab A/S (OMX:
GEN) announced today an amendment to the ofatumumab co-development and
commercialization agreement. Under the terms of the amendment, GSK will take
responsibility for developing ofatumumab in autoimmune indications whilst
continuing to jointly develop ofatumumab with Genmab in oncology indications.

Genmab will receive an up front payment of GBP 90 million (DKK 815 million) from
GSK. Genmab's future funding commitment for the development of ofatumumab in
oncology indications will be capped at a total of GBP 145 million (DKK 1,314
million), including a yearly spending cap of GBP 17 million (DKK 154 million)
for each of the next six years starting with 2010. Future milestones due to
Genmab under the oncology development program will be reduced by 50%. There
will be no change in royalty tiers to Genmab in the oncology program.

GSK is currently planning a number of Phase II clinical studies to take
ofatumumab forward in autoimmune indications. 'Autoimmune diseases represent an
area of high unmet medical need. GSK's growing biopharmaceutical capabilities
coupled with our deep therapy area expertise will greatly facilitate the
development of ofatumumab in these indications,' said Ian Tomlinson, Senior Vice
President, Biopharmaceutical R&D, GSK. GSK will be solely responsible for
funding the development in these indications. As a result, Genmab will forego
development milestones for autoimmune indications and the first two sales
milestones while retaining a double digit royalty on sales.

'The amendment to the ofatumumab agreement clearly highlights Genmab and GSK's
commitment to further develop this important product,' said Prof. Jan G.J. van
de Winkel, Ph.D., Chief Executive Officer of Genmab. 'We have a really
excellent partner in GSK. Their flexibility has allowed us to not only ensure
that we extract the best possible value from ofatumumab, but also strengthen the
financial security of Genmab.'

The amendment to the ofatumumab agreement is expected to have a material impact
on Genmab's 2010 financial guidance which will be updated with the company's
second quarter report on August 17, 2010.

The financial terms of the amendment to the ofatumumab co-development and
commercialization agreement are denominated in British Pounds (GBP). ?Solely for
the convenience of the reader, this press release contains a conversion of such
GBP amounts into Danish Kroner (DKK) using the Danish Central Bank closing rate
on July 1, 2010 which was GBP 1.00 = DKK 9.0600.

Genmab will hold a conference call to discuss today's news on July 2 at:

10:00 AM CEST
9:00 AM BST
4:00 AM EST?

The conference call will be held in English.
?
The dial in numbers are as follows:
+1 866 966 9439 (in the US) and provide conference ID no. 85618918
+ 44 1452 555 566 (outside the US) and provide conference ID no. 85618918

A live webcast of the call and relevant slides will be available at
www.genmab.com. The webcast will also be archived on Genmab's website.?

About GlaxoSmithKline
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and
healthcare companies - is committed to improving the quality of human life by
enabling people to do more, feel better, and live longer. For company
information, visit GlaxoSmithKline at http://www.gsk.com.

About Genmab A/S
Genmab is a leading international biotechnology company focused on developing
fully human antibody therapeutics for the potential treatment of cancer.
Genmab's world class discovery and development teams are using cutting-edge
technology to create and develop products to address unmet medical needs. Our
primary goal is to improve the lives of patients who are in urgent need of new
treatment options. For more information on Genmab's products and technology,
visit www.genmab.com.

This Stock Exchange Release contains forward looking statements. The words
'believe', 'expect', 'anticipate', 'intend' and 'plan' and similar expressions
identify forward looking statements. Actual results or performance may differ
materially from any future results or performance expressed or implied by such
statements. The important factors that could cause our actual results or
performance to differ materially include, among others, risks associated with
product discovery and development, uncertainties related to the outcome and
conduct of clinical trials including unforeseen safety issues, uncertainties
related to product manufacturing, the lack of market acceptance of our products,
our inability to manage growth, the competitive environment in relation to our
business area and markets, our inability to attract and retain suitably
qualified personnel, the unenforceability or lack of protection of our patents
and proprietary rights, our relationships with affiliated entities, changes and
developments in technology which may render our products obsolete, and other
factors. For a further discussion of these risks, please refer to the section
'Risk Management' in Genmab's Annual Report, which is available on
www.genmab.com. Genmab does not undertake any obligation to update or revise
forward looking statements in this Stock Exchange Release nor to confirm such
statements in relation to actual results, unless required by law.

Genmab(R); the Y-shaped Genmab logo(R); HuMax(R); HuMax-CD20(R); HuMax-EGFr(TM);
HuMax-IL8(TM); HuMax-TAC(TM); HuMax-HepC(TM); HuMax-CD38(TM); HuMax-CD32b(TM);
HuMax-TF(TM); HuMax-Her2(TM); HuMax-VEGF(TM); HuMax-Wnt; HuMax-cMet(TM) and
UniBody(R) are all trademarks of Genmab A/S. Arzerra(R) is a trademark of
GlaxoSmithKline.

Contact: Helle Husted, Vice President, Investor Relations, T: +45 33 44 77 30,
M: +45 25 27 47 13, E: h.husted@genmab.com

Stock Exchange Release no. 24/2010

News Source: NASDAQ OMX

01.07.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Genmab A/S

          Denmark

Phone:
Fax:
E-mail:
Internet:
ISIN: DK0010272202
WKN:

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