Ablynx and Merck expand immuno-oncology collaboration

Belgian drug developer Ablynx (Euronext Brussels: ABLX) has significantly expanded its immuno-oncology collaboration with Merck & Co (NYSE: MRK).

The collaboration was originally announced in February 2014 and focused on the discovery and development of five pre-defined Nanobody candidates directed towards immune checkpoint modulator targets for evaluation as immunotherapies for cancer.

Under the new expansion of the deal, Ablynx will be responsible for the discovery and development of up to 12 additional Nanobody programs against individual protein targets and target combinations through to the in vivo preclinical proof-of-concept stage. Merck will then have the option to advance specified lead candidates. Ablynx will receive an upfront payment of 13 million euros ($14.2 million), comprising exclusivity fees and FTE payments, as well as further research funding over the term of the collaboration. It will also be eligible to receive additional exclusivity fees, depending on the number of programs Merck decides to exercise its licensing option with, as well as development, regulatory and commercial milestone payments of up to 340 million euros per program, and tiered royalties on annual net sales upon commercialization. Merck takes responsibility for the clinical development, manufacturing and commercialization of products resulting from the collaboration.