Pursuant to a series of licensing arrangements commencing in May 1999, we obtained exclusive worldwide rights to Amgen's patent estate relating to antibodies to IL15, a promising target in the area of inflammation, and the IL15 receptor, which is found on a number of tumor types. In October 2001, this sub-licensing arrangement was replaced by a direct license from Amgen. Amgen retained an exclusive commercialization option for the products through Phase II. In July 2003, Amgen exercised its commercialization options for both the HuMax-IL15™ antibody program (now AMG 714) and the IL15 receptor program. In addition, Amgen has expanded its agreement with Genmab to include a new antibody program on an additional disease target.

Under the terms of the expanded and amended agreement, Genmab will be entitled to receive milestone payments and royalties on commercial sales. In connection with the option exercise, Genmab received the first milestone payment of USD 10 million for products targeting the IL15 pathway. Amgen is responsible for all future development costs for products targeting the IL15 pathway and Genmab will participate in the pre-clinical development of the new program. In September 2003, Genmab achieved the second milestone by delivering a human antibody targeting the IL15 receptor. The milestone released a USD 500,000 payment to Genmab from Amgen.

Amgen has discontinued development of AMG 714 in psoriasis and rheumatoid arthritis based on disappointing results from recent clinical studies. Amgen is exploring options to maximize the value of this asset, but at this time, no further internal development of a lead indication is planned.

Genmab has granted exclusive worldwide rights to develop and commercialize zanolimumab (HuMax-CD4®) to Emergent BioSolutions, Inc. Under the terms of the agreement, Genmab will be entitled to milestones and royalties on sales of zanolimumab. Emergent BioSolutions will be responsible for all future costs of developing, manufacturing and commercializing zanolimumab.

In December 2006, Genmab announced a worldwide agreement with GlaxoSmithKline (GSK) to co-develop and commercialize ofatumumab. Ofatumumab is in development for CD20 positive B-cell chronic lymphocytic leukemia (CLL), follicular non-Hodgkin's lymphoma (NHL), rheumatoid arthritis (RA), diffuse large B-cell lymphoma (DLBCL), Waldenstrom's macroglobulinemia and relapsing remitting multiple sclerosis (RRMS).

Under the terms of the agreement, Genmab received a license fee of DKK 582 million (approx. $102 million), and GSK invested DKK 2,033 million (approx. $357 million) to purchase 4,471,202 ordinary shares of Genmab. In addition, Genmab will be entitled to receive royalties on global sales of ofatumumab.

GSK received an exclusive worldwide license to ofatumumab as well as any other antibodies with affinity for the CD20 antigen which Genmab may develop. GSK also has an exclusive option to a CD20 UniBody® to be developed in collaboration with Genmab. GSK and Genmab will co-develop ofatumumab. GSK will be solely responsible for the manufacturing and commercialization of ofatumumab.

Under the original terms of the agreement, Genmab had an option to co-promote ofatumumab in a targeted oncology setting in the US and in the Nordic region. In addition, if Genmab exercised the co-promotion option, Genmab would have had the option to co-promote Bexxar™ and Arranon™ in the US and Atriance™ in the relevant countries of the Nordic region. Under the terms of a December 2008 amendment to the agreement, Genmab received a one-time payment of $4.5 million from GSK upon the FDA's acceptance for review of the filing of the first Biologcis License Application (BLA) for ofatumumab in an oncology indication in the USA in exchange for terminating its option to co-promote ofatumumab.

Under the terms of an amendment to the agreement in July 2010, GSK has taken responsibility for developing ofatumumab in autoimmune indications while continuing to jointly develop ofatumumab with Genmab in oncology indications. Genmab receives an up front payment of GBP 90 million (DKK 815 million) from GSK. Genmab’s future funding commitment for the development of ofatumumab in oncology indications will be capped at a total of GBP 145 million (DKK 1,314 million), including a yearly spending cap of GBP 17 million (DKK 154 million) each year forsix years starting with 2010. Future milestones due to Genmab under the oncology development program will be reduced by 50%. There will be no change in royalty tiers to Genmab in the oncology program. GSK will be solely responsible for funding the development in autoimmune indications and Genmab will forego development milestones for autoimmune indications and the first two sales milestones while retaining a double digit royalty on sales.

To date, Genmab has received nine milestone payments under the GSK collaboration, as follows:
• June 2007 - DKK 116 million (approximately USD 21 million) for positive results in the Phase II RA study
• December 2007 - DKK 87 million (approximately USD 18 million) when the first patient was treated in the Phase II DLBCL study
• January 2008 - DKK 87 million (approximately USD 18 million) when the first patient was treated in the Phase III RA program
• June 2008 - DKK 29 million (approximately USD 6 million) when the first patient was treated in the Phase II study for RRMS
• August 2008 - DKK 232.7 million (approximately USD 48.5 million) for the achievement of positive results in the ofatumumab Phase III CLL study
• October 2008 - approximately DKK 29 million (approximately USD 5.6 million) when the first patient received treatment in the ofatumumab Phase I study in relapsed/refractory follicular non-Hodgkin's lymphoma and chronic lymphocytic leukemia in Japan
• February 2009 - DKK 58 million (approximately USD 10 million) in connection with EMEA's acceptance of the MAA for ofatumumab in refractory CLL
• March 2009 - DKK 87 million (approximately USD 15 million) when the FDA accepted the BLA for ofatumumab in refractory CLL
• October 2009 - DKK 116 million ( approximately USD 23 million) when the FDA approved ofatumumab for the treatment of CLL that is refractory to fludarabine and alemtuzumab
• April 2010 – DKK 87 million (approximately USD 16 million) when the European Commission granted a conditional marketing authorization for ofatumumab for the treatment of refractory CLL
• September 2010 – DKK 116 million (approximately USD 20 million), triggered by the treatment of the first patient in the Phase III study of ofatumumab in rituximab-refractory NHL

Genmab and H. Lundbeck A/S entered an agreement to create and develop human antibody therapeutics for disorders of the central nervous system (CNS) in October 2010. Genmab will create novel human antibodies to three targets identified by Lundbeck. Lundbeck will have access to Genmab’s antibody creation and development capabilities, including its UniBody platform. Lundbeck will have an option to take selected antibodies into clinical development at its own cost and subject to the payment of milestones and single-digit royalties to Genmab upon successful development and commercialization. Genmab will have a similar option to take selected antibodies into clinical development for cancer indications at its own cost and subject to the payment of milestones and single-digit royalties to Lundbeck.

Under the terms of the agreement, Genmab receives an upfront payment of €7.5 million (approximately DKK 56 million). Lundbeck will fully fund the development of the antibodies. If all milestones in the agreement are achieved, the total value of the agreement to Genmab would be approximately €38 million (approximately DKK 283 million), plus single-digit royalties.

Genmab has a unique alliance with Medarex, a wholly owned subsidiary of Bristol-Myers Squibb, that gives us access to the UltiMAb® system for creating the full range of human antibody isotypes. Under this agreement, Genmab has the right to obtain licenses for an unlimited number of antibodies and owns the worldwide development and commercialization rights to these products. Genmab’s principal obligation under this agreement is to make royalty payments in connection with any such product licenses. Genmab received these rights in exchange for stock in the company, and we also received 16 fully paid up product licenses, which require no further payments to Medarex.

In May 2001, we entered into a collaboration with Roche to develop human antibodies to disease targets identified by Roche for the entire Roche organization. Under this collaboration, we could receive milestones, license fees as well as royalty payments on commercial sales. In certain circumstances, we could obtain rights to develop products based on disease targets identified by Roche.

In 2002, we expanded our alliance with Roche, and Roche made an equity investment in Genmab totalling USD 20 million at a price of DKK 180 per share. Under the current agreement, Genmab will receive milestones as well as royalty payments on successful products and in certain circumstances Genmab could obtain rights to develop products based on disease targets identified by Roche.
Roche is developing two of the antibodies created by Genmab under the agreement.

In September 2010, Genmab and Seattle Genetics, Inc. entered into an antibody-drug conjugate (ADC) research collaboration agreement. Under the agreement, Genmab has rights to utilize Seattle Genetics’ ADC technology with its HuMax-TF antibody. Seattle Genetics received an undisclosed upfront payment and has the right to exercise a co-development option for any resulting ADC products at the end of Phase I clinical development.

Genmab is responsible for research, manufacturing, preclinical development and Phase I clinical trials of ADCs under this collaboration. Seattle Genetics will receive research support payments for any assistance provided to Genmab. If Seattle Genetics opts into an ADC product at the end of Phase I, the companies would co-develop and share all future costs and profits for the product on a 50:50 basis. If Seattle Genetics does not opt in to an ADC product, Genmab would pay Seattle Genetics fees, milestones and mid-single digit royalties on worldwide net sales of the product.

In April 2011, Genmab entered into a second ADC research collaboration agreement with Seattle Genetics. Under the new agreement, Genmab has rights to utilize Seattle Genetics’ ADC technology with HuMax-CD74, an antibody in pre-clinical development to target CD74, which is expressed on a wide range of hematological malignancies and solid tumors. Seattle Genetics received an undisclosed upfront payment and has the right to exercise a co-development and co-commercialization option for any resulting ADC products at the end of Phase I clinical development.

Genmab is responsible for research, manufacturing, pre-clinical development and Phase I clinical evaluation of ADCs under this new collaboration. Seattle Genetics will receive research support payments for any assistance provided to Genmab. If Seattle Genetics opts into an ADC product at the end of Phase I, a payment would be due to Genmab and the companies would co-develop and share all future costs and profits for the product on a 50:50 basis. If Seattle Genetics does not opt in to an ADC product, Genmab would pay Seattle Genetics fees, milestones and mid-single digit royalties on worldwide net sales of the product.