unum-Shares of Seattle Genetics stumbled on Tuesday after the Bothell-based company announced a partnership to license the Antibody-Coupled T-cell Receptor (ACTR) technology from Cambridge, Mass.-based Unum Therapeutics.

As part of the deal, Seattle Genetics will pay $25 million in cash, and it has agreed to spend $5 million upon Unum’s next venture funding round. Seattle Genetics’ stock fell more than three percent on the news, though it is still up more than 40 percent so far this year. The company now boasts a market value of $5.75 billion.

Unum’s ACTR technology involves the “programming” of a patient’s T-cells to attack tumor cells.

Here’s more of the description from Unum.

ACTR is a chimeric protein that combines components from receptors normally found on two different human immune cell types – natural killer (NK) cells and T-cells – to create a novel cancer cell killing activity. T-cells bearing the ACTR receptor can be directed to attack tumor cells by providing a monoclonal antibody that binds to antigens on the cancer cell surface and then acts as a bridge to the ACTR T-cell, enabling tumor cell killing. Unum has built a platform for cancer treatment based upon ACTR. In contrast to other approaches that are limited to a single target and treat a narrow set of tumors, Unum’s approach is not restricted by antigen and may have applications for treating many types of cancers.

In a press release, Seattle Genetics CEO Clay Siegall said the partnership is an extension of the company’s work for 17 years in the cancer research field.

seattlegenetics“Unum’s innovative technology for a universal, antibody-directed cellular immunotherapy is differentiated from other engineered T-cell approaches, and may have broad applicability across a range of cancer targets,” Siegall said. ” We are pleased to be collaborating with one of the most promising companies in the emerging field of cellular immunotherapy to develop new treatment options for cancer patients with unmet medical needs.”

The companies will initially develop two ACTR products, incorporating Seattle Genetics’ antibodies. Seattle Genetics also has an option to expand the collaboration to include a third ACTR product.

The companies said that they would split profits 50/50 on any co-developed drugs in the U.S. Seattle Genetics also will retain exclusive commercial rights outside of the United States, paying Unum “high single to mid-double digit royalties.”

 

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