Benzinga | Aug 9, 2021 12:02PM EDT

Seagen Bets On China's ADC In $2.6B Cancer Deal

* Seagen Inc (NASDAQ:SGEN) and RemeGen Co Ltd have entered into an exclusive worldwide licensing agreement to develop and commercialize disitamab vedotin.

* For $200 million upfront, Seagen is getting ex-Asia rights to Chinese biotech RemeGen's HER2-targeted antibody-drug conjugate (ADC) disitamab vedotin.

* RemeGen is entitled to up to $2.4 billion in potential milestone payments if everything plays out across multiple indications. The deal also covers rights in Japan and Singapore.

* The news comes just two months after disitamab vedotin won a conditional nod from China's National Medical Products Administration to treat stomach cancer following at least two prior systemic therapies.

* Price Action: SGEN shares are down 1.25% at $158.97 during the market session on the last check Monday.