Merck KGaA acquires rights to PDS Biotech's technology; threatens action in Portugal

Privately-held US biotech firm PDS Biotechnology says it has entered into an exclusive worldwide licensing agreement with Germany’s Merck KGaA (MRK: DE) for use of its novel Versamune nanotechnology platform in two of Merck's investigational antigen-specific cancer immunotherapies currently in preclinical development.

Under the terms of the deal, PDS Biotech will receive an undisclosed upfront payment in cash, as well as development milestone payments, and commercial and sales milestone payments. The US firm will also receive royalties on sales of the products incorporating the technology.

Frank Bedu-Addo, chief executive of PDS Biotechnology, said: "…this deal is important since the company's business strategy is focused on a few strategic out-licensing or partnering deals at a preclinical or early clinical stage. This is the stage where companies will be seeking to enhance their pipelines by taking advantage of a new technology that has broad potential applications in clinical research into the treatment and prevention of cancer and infectious diseases."