Merck & Co out-licenses tildrakizumab to Sun Pharma

US pharma giant Merck & Co (NYSE: MRK) has entered into an exclusive worldwide licensing agreement with Indian drugmaker Sun Pharmaceuticals (BSE: 52471) for Merck’s investigational therapeutic antibody candidate, tildrakizumab, (MK-3222), which is currently being evaluated in Phase III registration trials for the treatment of chronic plaque psoriasis, a skin ailment.

Under terms of the deal, Sun Pharma will acquire worldwide rights to tildrakizumab for use in all human indications from Merck in exchange for an upfront payment of $80 million. Merck will continue all clinical development and regulatory activities, which will be funded by Sun Pharma. On product approval, Sun Pharma will be responsible for regulatory activities, including subsequent submissions, pharmacovigilance, post approval studies, manufacturing and commercialization of the approved product. Merck is eligible to receive undisclosed payments associated with regulatory (including product approval) and sales milestones, as well as tiered royalties ranging from mid-single digit through teen percentage rates on sales.

Decision part of sharpening Merck’s commercial and R&D focus