Emergent BioSolutions and MorphoSys to co-develop prostate cancer drug candidate ES414

US biopharmaceutical firm Emergent BioSolutions (NYSE: EBS) and Germany’s MorphoSys (FSE: MOR) have entered into an agreement for the joint development and commercialization of Emergent’s preclinical bi-specific antibody, ES414, targeting prostate cancer.

Under the terms of the accord, Emergent will receive an upfront $20 million and milestone payments of up to $163 million. These milestone payments are linked to specific events, including successful development of ES414 in several indications and securing approval in certain territories.

Emergent and MorphoSys will jointly develop ES414, with MorphoSys bearing 64% and Emergent 36% of the total costs. Emergent will retain commercialization rights in the USA and Canada, with a tiered royalty obligation to MorphoSys, from mid-single digit up to 20%. MorphoSys will gain worldwide commercialization rights excluding the USA and Canada, with a low single digit royalty obligation to Emergent. Emergent will manufacture and supply clinical material from its manufacturing facilities in Baltimore, Maryland. Additional financial details were not disclosed.