Summary of MICROMET, INC. - Yahoo! Finance

Entry into a Material Definitive Agreement, Other Events, Financial Statements and

Item 1.01. Entry into a Material Definitive Agreement.

On November 23, 2009, Micromet, Inc. through its wholly-owned subsidiary Micromet AG (collectively, the "Company") entered into an agreement for the process development and manufacture of blinatumomab (the "Agreement") with Lonza AG ("Lonza"), a market leading custom manufacturer of antibodies and other biologics.

Under the terms of the Agreement, Lonza will establish the current manufacturing process for blinatumomab and develop the process to a scale sufficient for the manufacture of blinatumomab for commercial sale. In addition, Lonza will manufacture blinatumomab for clinical trials. The Company has the option to engage Lonza for the manufacture of blinatumomab for commercial sale based on financial terms established in the Agreement. The manufacturing process to be developed by Lonza can be transferred, under financial terms agreed in the Agreement, to another contract manufacturer in order to either establish a second source for supply or in the event that the Company desires to transfer manufacturing to a third party. The work plan anticipates payments in the amount of approximately ?4 million for the activities to be performed by Lonza during the first twelve months of the Agreement. Either party may terminate the Agreement for material breach by the other party. In addition, the Agreement may be terminated by the Company at any time upon no less than thirty days prior notice, subject to certain termination payments that may apply depending on the timing of the termination notice.

The foregoing description of the Agreement is a summary only, does not purport to be complete, and is qualified in its entirety by reference to the full text of the Agreement, which will be filed as an exhibit to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2009.