Merck & Co in potential $1 billion deal for cancer drug candidate vintafolide

17 April 2012

US drug giant Merck & Co (NYSE: MRK) has entered into an agreement to develop and commercialize Endocyte's (Nasdaq: ECYT) novel investigational therapeutic candidate vintafolide (EC145). The news pushed Endocyte’s shares a massive 99% higher to $7.57 in pre-market trading yesterday.

Under the terms of the deal, Merck, through a subsidiary, will gain worldwide rights to develop and commercialize vintafolide. Endocyte will receive a $120 million upfront and is eligible for milestone payments of up to $880 million based on the successful achievement of development, regulatory and commercialization goals for vintafolide for a total of six cancer indications. In addition, if vintafolide receives regulatory approval, Endocyte will receive an equal share of the profit in the USA, as well as a double-digit percentage royalty on sales of the product in the rest of the world.

In trials for ovarian cancer and NSCLC

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