AstraZeneca's acquisition of Cambridge Antibody Technology will give the firm royalty revenues from human monoclonal antibody technologies already licensed out by CAT, including Abbott's rheumatoid arthritis therapy Humira (adalimumab).

"CAT also provides AstraZeneca with several other substantial assets beyond its current scientific capabilities," AstraZeneca said. "These include a royalty stream on the sales of Humira, potential milestone and royalties on CAT's other licensed products and access to CAT's proprietary pipeline."

AstraZeneca announced plans to acquire a full stake in CAT May 15 for $1.07 bil. ([L]568 mil.) as part of an initiative to increase its biologics pipeline (see ¹ Also see "AstraZeneca Hears CAT’s Meow With Biotech Acquisition" - Pink Sheet, 15 May, 2006.).

In addition to Humira, CAT has several out licensed monoclonal antibody technologies in development, including Abbott's ABT-874 for multiple sclerosis, Crohn's disease and psoriasis; Human Genome Sciences' LympoStat-B for lupus and RA and ABthrax for anthrax infection; HGS-ETR1 and HGS-ETR2 for cancer, being co-developed with GlaxoSmithKline and Human Genome Sciences; and MYO-029 for muscular dystrophy, licensed to Wyeth.

In CAT's pipeline is GC-1008, which is under development in collaboration with Genzyme for the treatment of idiopathic pulmonary fibrosis. CAT's relationship with Genzyme on GC-1008, however, includes a change of control clause, meaning AstraZeneca will likely undertake discussions with Genzyme.

"The rest of the licensed pipeline are, as the term describes, licensed to our partners...and our interest with this offer completing, AstraZeneca's interest, is a financial one," AstraZeneca Exec Development Director John Patterson said.

- Jessica Merrill

AstraZeneca Will Get Humira Royalty Revenue Through CAT Deal

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