Merck Serono signs $232 million deal with Chinese company for BeiGene-290

Merck Serono, the biotech unit of Germany’s Merck KGaA (MRK: DE) has signed a global licensing, co-development and commercialization agreement for BeiGene-290 with Chinese R&D company BeiGene.

Under the terms of the collaboration, BeiGene will be responsible for the development and commercialization of BeiGene-290 in China, and Merck will be responsible for BeiGene-290 in the rest of the world. BeiGene will receive an undisclosed upfront payment and is eligible to receive further payments of up to 170 million euros ($232 million) for the achievement of clinical development and potential commercial milestones in both the People’s Republic of China and rest of the world, as well as royalties on net sales.

The compound, which is a potent poly (ADP-ribose) polymerase (PARP) inhibitor for the treatment of cancer, is in preclinical development and is expected to enter clinical development next year. PARP inhibitors are thought to target an enzyme family, poly (ADP-ribose) polymerase, which is involved in a number of cellular processes, including DNA repair and programed cell death. This is the second collaboration agreement between the two companies this year.