Seattle Genetics said Wednesday it expanded a cancer treatment collaboration with drugmaker AbbVie.
The Bothell, Wash., company said it will receive a $25 million upfront payment from AbbVie, and it could get $255 million in license and milestones payment per drug. AbbVie also agreed to pay Seattle Genetics royalties in the single digits on sales of any drugs that are approved.
Shares of Seattle Genetics picked up $1.01, or 2.5 percent, to $41.04 in midday trading. AbbVie shares lost 8 cents to $50.41.
Seattle Genetics Inc. and Abbott Laboratories started working together in March 2011 on experimental antibodies designed fight cancer. The antibodies are designed to selectively deliver anticancer drugs to tumor cells. Abbott made an $8 million upfront payment. In October 2012 the companies agreed to expand their partnership, and Abbott paid Seattle Genetics another $25 million.
AbbVie Inc. was spun off from Abbott a year ago. It sells branded prescription drugs, including the blockbuster anti-inflammatory drug Humira, which is used to treat rheumatoid arthritis, psoriasis and Crohn's disease.