Merck, Kelun-Biotech Ink Licensing Pact For Seven Cancer Candidates
1 min read Merck & Co Inc MRK and Kelun-Biotech (a holding subsidiary of Sichuan Kelun Pharmaceutical Co Ltd) have entered into an exclusive license and collaboration agreement to develop seven investigational preclinical antibody-drug conjugates (ADC) for cancer. Under the agreement, Kelun-Biotech has granted Merck exclusive global licenses to research, develop, manufacture and commercialize multiple investigational preclinical ADC therapies and exclusive options to obtain additional licenses for ADC candidates. Kelun-Biotech retains the right to research, develop, manufacture, and commercialize certain licensed and option ADCs for mainland China, Hong Kong, and Macau. Kelun-Biotech will receive an upfront payment of $175 million from Merck. Kelun-Biotech is also eligible to receive future development, regulatory, and sales milestone payments totaling up to $9.3 billion if Kelun-Biotech does not retain mainland China, Hong Kong, and Macau rights for the option ADCs.
Merck also intends to make an equity investment in Kelun-Biotech. This announcement follows previously disclosed research collaboration and licensing agreements for two ADC candidates, including MK-2870 (also known as SKB-264), an investigational TROP2 targeting ADC currently being evaluated in late-stage clinical trials. Price Action: MRK shares are down 0.32% at $110.75 on the last check Thursday.
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