BOTHELL, Wash. (AP) -- Seattle Genetics Inc. said Tuesday that pharmaceutical giant Abbott Laboratories has agreed to pay $25 million plus potential milestone payments for the biotech firm's experimental antibodies to fight cancer.
Under terms of the deal, Seattle Genetics may receive up to $220 million in milestone payments, if the products resulting from the antibodies are developed and achieve commercial goals.
Seattle Genetics and Abbott originally entered into an agreement to develop auristatin-based antibody technology in March 2011. The antibodies are designed to selectively deliver anticancer drugs to tumor cells.
Abbott is responsible for research, product development, manufacturing and commercialization of any antibody products under the expanded collaboration. In addition to the upfront payment and potential milestone royalties, Seattle Genetics will receive annual maintenance fees and research support payments.
Seattle Genetics Inc. shares fell 35 cents to $25.68 in midday trading amid a broad market decline. Abbott shares lost 92 cents at $64.89.