Immunomedics Inc. announced an agreement with Algeta ASA for the development of Immunomedics' humanized anti-CD22 antibody, epratuzumab, conjugated with Algeta's proprietary thorium-227 alpha-pharmaceutical payload. Epratuzumab is a humanized monoclonal antibody that binds to the CD22 receptor on the surface of B cells. Epratuzumab has been evaluated for the treatment of a variety of hematological cancers and for autoimmune diseases such as systemic lupus erythematosus.

Under the terms of this agreement, Immunomedics will provide clinical-grade antibody to Algeta, which has rights to evaluate the potential of a Targeted Thorium Conjugate (TTC), linking thorium-227 to epratuzumab, for the treatment of cancer. Algeta will fund all preclinical and clinical development costs up to the end of Phase I testing. Upon successful completion of Phase I testing, the parties shall negotiate terms for a license at Algeta's request according to certain parameters now agreed between the companies.

Financial terms of the agreement were not disclosed, but include an upfront payment from Algeta to Immunomedics, an antibody delivery milestone and payments for cGMP antibody manufacture.