By Mary Welch

Just days after signing a potential $40 million licensing deal with Genentech Inc., ImmunoGen Inc. completed its second deal with Genentech, except this time Genentech will pay $40 million for each antigen target it develops using ImmunoGen's maytansinoid Tumor-Activated Prodrug (TAP) technology.

"The first deal was a licensing deal using our TAP technology for use with Genentech's Herceptin and other HER-2-binding proteins," said Mitchel Sayare, ImmunoGen's chairman and CEO. "This is an option agreement. It grants Genentech a license to use our technology with any antibodies they have in-house and, if they decide to go forward with development, then we grant them an exclusive license for $40 million in milestone payments per target. Six targets, that's $240 million."

The five-year agreement provides for an up-front technology access fee of $3 million. In addition to the milestone payments per target, Cambridge, Mass.-based ImmunoGen also will receive royalties on net sales from any resulting products.

Genentech, based in South San Francisco, will be responsible for manufacturing, product development and marketing of any products. ImmunoGen will be reimbursed for any preclinical materials it makes under the agreement.

After the five years, Genentech has an option to renew the agreement for a three-year period, after paying another technology access fee.

ImmunoGen's product candidates are called TAPs and are based on a proprietary immunoconjugate technology platform. TAPs are intended to deliver potent chemotherapy specifically to a tumor.

The TAPs consist of drugs coupled to monoclonal antibodies, like Herceptin, for delivery to and destruction of cancer cells. ImmunoGen's most advanced TAP, huC242- DM1/SB-408075, is designed to treat colorectal and pancreatic cancers.

"This deal is important for several reasons," Sayare said. "First off, there's the money. But even more so than the cash is that this is the first step in gaining a higher recognition that our technology platform is an enabling one. We expect to see a number of deals with a number of monoclonal antibodies. We're very pleased with Genentech as a partner. They are the right partner and very aggressive in their product development."

Last week ImmunoGen entered into a deal with British Biotech plc, of Oxford, UK, as well as the first collaboration with Genentech involving Herceptin. Herceptin is a humanized anti-HER2 monoclonal antibody that is used to treat breast cancer. (See BioWorld Today, May 8, 2000, p. 1; and BioWorld Today, May 5, 2000, p. 1.).

Sayare acknowledged that the three new deals have brought changes to the company.

"All of a sudden we have $20 million in the bank and we're in a positive cash-flow position," Sayare said. "We're in great shape."

ImmunoGen's stock (NASDAQ:IMGN): closed Monday at $12, up 43.7 cents. Genentech's stock (NYSE:DNA) closed at $131.50, up $7.562.