Seattle Genetics (SGEN)

PSMA Development Company

In June 2005, the Company entered into an ADC collaboration with PSMA Development Company LLC, a joint venture between Progenics Pharmaceuticals, Inc. and Cytogen Corporation. The license provides PSMA Development Company with rights to utilize the Company’s ADC technology to link cell-killing drug payloads to PSMA Development Company’s fully human monoclonal antibodies that target prostate-specific membrane antigen (PSMA). Under the terms of the collaboration, PSMA Development Company paid the Company a $2.0 million upfront fee which was deferred and is being recognized as revenue ratably over the three year research period of the collaboration. PSMA Development Company has also agreed to make progress-dependent milestone payments and pay royalties on net sales of resulting ADC products. PSMA Development Company is responsible for research, product development, manufacturing and commercialization of all products under the collaboration. The Company will receive material supply and annual maintenance fees as well as research support payments for any assistance provided to PSMA Development Company in developing ADC products.