UPDATE 1-Immunomedics in license deal with Nycomed; shares rise

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July 14 (Reuters) - Immunomedics Inc (IMMU.O) said it entered into a licensing agreement with Swiss drug company Nycomed to develop and market veltuzumab, its experimental anti-body for non-cancer indications.

Shares of Immunomedics rose 18 percent before the opening bell to $2.59, after closing at $2.20 Friday on Nasdaq.

Immunomedics will receive a non-refundable initial cash payment of $40 million, subject to regulatory approval, and could receive potential cash milestone payments of up to $580 million.

Under the terms of the agreement, Nycomed will be responsible for all costs associated with current and future clinical development, manufacturing and commercialization of veltuzumab in subcutaneous formulation for all non-cancer indications.

Nycomed will develop veltuzumab in rheumatoid arthritis as the primary indication, Immunomedics said in a statement. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Bernard Orr)