Micromet, Inc. (MITI) announced that Bayer Schering Pharma AG has exercised its option under the option, collaboration and license agreement entered into on January 12, 2009 to develop a new BiTE antibody for the treatment of solid tumors.
As per the agreement, Bayer Schering Pharma had an option until January 5, 2010 to license a specific BiTE antibody targeting an undisclosed target. The option exercise triggers a formal collaboration between Micromet and Bayer Schering Pharma on the development of the BiTE antibody. Micromet will be primarily responsible for the preclinical development of the BiTE antibody, and will collaborate with Bayer through the completion of phase 1 clinical trials, at which point Bayer Schering Pharma will assume full control of the further development and commercialization of the BiTE antibody.
Micromet would receive an option exercise fee of EUR 5 million, and is eligible for further milestone payments of up to EUR 285 million in total and up to double digit royalties on net sales of the BiTE antibody.
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