F-Star and Merck Serono in up to 492 million-euro collaboration on novel targeted biologics

Austrian biotech firm F-Star GmbH has entered into a research, license and commercialization agreement with Merck Serono, a division of Germany’s Merck KGaA (MRK: DE) for the discovery of new antibody-derived therapeutics against inflammatory disease targets using F-Star’s Modular Antibody Technology, worth a potential 492 million euros ($699 million) to the firm.

Under the terms of the deal, Merck Serono will nominate up to three therapeutic targets and the parties will collaborate to jointly discover mono-specific Fc-based targeted biologics (Fcabs) and bi-specific IgG-based targeted biologics (mAb2) for which Merck KGaA will have exclusive worldwide development and commercialization rights. F-Star will receive an initial technology access fee and research-based funding and is eligible to receive additional license fees, development, regulatory and commercialization milestones which in aggregate could reach 492 million euros, as well as undisclosed tiered royalties on product sales. Further details of the agreement were not disclosed.

Deal expands investor relationship