Genmab A/S (Copenhagen: GEN) announced on Thursday the entering into a research collaboration and exclusive license agreement with Immatics Biotechnologies GmbH (Immatics), a clinical-stage biopharmaceutical company active in the discovery and development of T-cell redirecting immunotherapies for the treatment of cancer, to discover and develop next-generation bispecific immunotherapies to target multiple cancer indications.

Reportedly, this deal strengthens Genmab's position in immuno-oncology by combining Genmab's proprietary technologies and antibody know-how with Immatics' XPRESIDENT targets and T-cell receptor (TCR) capabilities.

Under the terms of the agreement, Genmab will pay Immatics an upfront fee of USD54m and Immatics is eligible to receive up to USD550m in development, regulatory and commercial milestone payments for each product, as well as tiered royalties on net sales.

Genmab will receive an exclusive license to three proprietary targets from Immatics, with an option to license up to two additional targets at predetermined economics. The companies will conduct joint research, funded by Genmab, on multiple antibody and/or TCR-based bispecific therapeutic product concepts.

Also, Genmab may elect to progress any resulting product candidates, and will be responsible for development, manufacturing and worldwide commercialisation. For any products that are commercialised by Genmab, Immatics will have an option to limited co-promotion efforts in selected countries in the EU.

According to Genmab, this collaboration with Immatics gives it the opportunity to combine its unique technologies and expertise to create differentiated novel next-generation therapies.

This news does not impact Genmab's 2018 financial guidance, the company clarified.

Genmab specialises in the creation and development of differentiated antibody therapeutics for the treatment of cancer.