Merck enters into collaboration with NGM to develop biologics

24 February 2015

US pharma giant Merck & Co (NYSE: MRK) has entered into a collaboration with privately-held biotech company NGM Biopharmaceuticals to research, discover, develop and commercialize biologics across several therapeutic areas.

The agreement will take effect upon the end of the waiting period mandated by the Hart-Scott-Rodino Antitrust Improvements Act. The collaboration includes drug candidates currently in preclinical development at NGM, including NP201, which is being evaluated for the treatment of diabetes, obesity and nonalcoholic steatohepatitis. NGM will lead the research and development of the existing preclinical candidates and be able to identify and pursue other discovery-stage programs at its discretion. Merck will have the option to license all resulting NGM programs following human proof of concept trials. If Merck exercises this option, it will lead global product development and commercialization for the resulting products, if approved.

Upfront payment of $94 million

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