Merck Serono and Ono Pharma collaborate on investigational oral MS drug and cancer vaccine

Merck Serono, the biotech unit of Germany’s Merck KGaA (MRK: DR), has set out plans to collaborate with Japan’s Ono Pharmaceutical (TYO: 4528) for the development and commercialization of ONO-4641, an oral investigational sphingosine-1-phosphate (S1P) receptor modulator, in Phase II in multiple sclerosis, as well as on the development and marketing in Japan of Stimuvax (BLP25 liposome vaccine), Merck’s investigational cancer immunotherapy currently in Phase III clinical development.

This is another attempt by Merck to get back into the potentially lucrative oral MS sector, following its disappointment with Movectro (cladribine) and more recently its deal with US biotech firm Peptimmune for exclusive rights to the latter’s experimental MS agent PI-2302, which is in Phase II testing (The Pharma Letter September 9). Swiss drug major Novartis’ Gilenya (fingolimod) gained regulatory clearance last year. The advent of oral MS treatments is expected to expand the already $10 billion a year MS market to some $15 billion.

Pays $19.5 million upfront for ONO-4641