Merck has option to acquire MAb programs, in a deal worth potentially over 1 billion euros

UK biotech firm F-star has entered into a new partnership with Germany’s Merck KGaA (MRK: DE) for the development and commercialization of five bispecific immuno-oncology antibodies (MAbs).

Under the accord and on delivery of pre-defined data packages, Merck has the option to acquire five of F-star’s bispecific programs. This option includes exclusive development and commercialization rights to F-star’s preclinical lead asset FS118, which is designed to block LAG-3 (Lymphocyte-Activation Gene 3) and PD-L1 (Programmed Death-Ligand 1), two pathways commonly used by cancer cells to evade the immune system. In a preclinical model, F-star has demonstrated that FS118 could improve efficacy compared to monotherapy combinations, which supports the potential to initiate a clinical development program.

Initial payment and R&D funding of 115 million euros to F-star