Shares in Seattle Genetics were on the rise Wednesday as investors welcomed news of another tie up with Danish group Genmab potentially worth more than $211 million.

Building on an existing partnership that dates back to 2010, the new deal will see Genmab pay $11 million for exclusive use of the US biotech’s Antibody-Drug Conjugates (ADC) technology with its own antibody HuMax-AXL, which targets a signalling molecule involved in multiple processes of tumour development and progression.

The technology makes ADCs by attaching synthetic cytotoxic agents to antibodies, the idea being to enable more targeted delivery of toxins into cancer cells and thus help reduce harm to surrounding healthy tissues. Of the roughly 40 ADCs in clinical development, more than 60% are utilising Seattle Genetics’ ADC technology, the firm notes.

As per the terms of the deal, the US group also stands to cash in more than $200 million in potential milestone payments and mid-to-high single digit royalties on worldwide net sales of any resulting products, but it also has the right to boost royalties to double-digits in exchange for a cut in milestones from Genmab if any products near Phase III.

The companies entered into an ADC collaboration for HuMax-TF-ADC, which targets Tissue Factor antigen and is now in Phase I trials, in September 2010.