Seattle Genetics shares jump on Genentech agreement

Seattle Genetics shares rose as much as 31 percent after the company agreed with Genentech Inc. to develop blood-cancer treatments.

Genentech will pay Seattle Genetics $60 million to co- develop an experimental treatment for multiple myeloma and other blood cancers, the companies said today.

Seattle Genetics, based in Bothell, may receive as much as $800 million from South San Francisco-based Genentech if the therapy, a so-called monoclonal antibody, passes certain development and sales guidelines for multiple diseases, the companies said in a statement.

Genentech's worldwide licensing agreement covers development and commercialization of SGN-40, Seattle Genetics' most advanced drug candidate. SGN-40 is currently in Phase I and Phase II clinical trials for multiple myeloma, chronic lymphocytic leukemia and non-Hodgkin's lymphoma.

Seattle Genetics shares increased by $1.35, or 26 percent, to $6.64 in mid-morning Nasdaq trading.

Seattle Times staff contributed to this report.