Merck will obtain exclusive global licenses to research, develop, manufacture, and commercialise investigational preclinical ADC therapies, along with options to obtain additional ADC candidates
Merck headquarters in Kenilworth, NJ. (Credit: Merck & Co., Inc.)
Merck, known as MSD outside of the US and Canada, has entered a $9.3bn exclusive license and collaboration agreement with Kelun-Biotech for developing seven investigational preclinical antibody-drug conjugates (ADC) to treat cancer.
Under the terms of the agreement, Merck will obtain exclusive global licenses to research, develop, manufacture, and commercialise investigational preclinical ADC therapies.
It will also hold exclusive options to obtain additional licenses to ADC candidates, and it also intends to make an equity investment in Kelun-Biotech.
Kelun-Biotech will retain the rights to certain licensed and option ADCs for commercialisation in mainland China, Hong Kong and Macau.
Merck will make an upfront payment of $175m, plus up to $9.3bn in future development, regulatory and sales milestone payments, along with tiered royalties on net sales.
Merck research laboratories president Dean Y Li said: “Advances in ADC technologies are yielding a new generation of candidates designed to more precisely target and deliver potent anticancer agents to the tumour site.
“We continue to augment our oncology pipeline and look forward to working with the Kelun-Biotech team to advance these candidates to the patients that need them.”
The transaction is subject to customary closing conditions including regulatory approval under the Hart-Scott Rodino (HSR) Act and approvals by the Kelun shareholders.
The current collaboration follows previously disclosed research collaboration and licensing agreements for two ADC candidates, currently being evaluated in late-stage clinical trials.
Established in 2016, Kelun-Biotech is a subsidiary of Sichuan Kelun Pharmaceutical.
It is a clinical-stage biotech company engaged in discovery and development biologic therapeutics as well as small molecule therapeutics.
The company focuses on unmet medical needs such as oncology and autoimmune conditions, along with discovery and development of novel therapeutics.
Kelun-Biotech’s current pipeline contains 33 therapeutic programs targeting cancers, autoimmune conditions, infectious diseases, and metabolic syndromes.
Kelun-Biotech chief executive officer Junyou Ge said: “The further expansion of our collaboration with Merck provides a strong endorsement for our technology from a leader in the development of cancer treatments.”