German drugmaker Merck KGaA is in advanced talks with potential partners interested in its experimental cancer immunotherapy drug and expects to reach an agreement before the end of the year.
The drug is an anti-PD-L1 agent, one of a number of new drugs within the research area of immuno-oncology that are designed to make tumour cells more vulnerable to attack by the body’s immune system.
Merck KGaA has decided to seek a partner for its product, which is said to have already been given to more than 500 patients in early-stage Phase I trials and is seen as a potential treatment for lung, ovarian and Merkel cell skin cancer.
'We have initiated a competitive process to select the best partner for the global co-development and co-commercialisation of our anti-PD-L1 compound,' said Stefan Oschmann, Head of Merck's pharmacy business.
'We are currently in advanced discussions with major oncology players and aim to reach an agreement by year-end.'
Merck added that it planned to invest an additional €130 to €150m next year in its Biosimilars unit, in addition to €100m already invested this year, depending on the outcome of ongoing Phase I studies.
We are currently in advanced discussions with major oncology players and aim to reach an agreement by year-end
The company will expand existing partnerships with India's Dr Reddy's and Brazil's Bionovis with another, as yet undisclosed in-licensing agreement for a late-stage biosimilar, initially for smaller emerging markets.
In a separate announcement, Merck's biopharmaceutical division, Merck Serono, has signed a collaboration and licensing agreement with Sutro Biopharma of San Francisco, US to develop antibody drug conjugates (ADCs).
The collaboration will allow Merck Serono to develop ADCs for multiple undisclosed targets. It will combine Merck Serono’s knowledge about target biology with Sutro’s technological and discovery capabilities to jointly develop ADCs.
Under the terms of the agreement, Sutro and Merck Serono will collaborate to discover and develop multiple ADCs using Sutro’s cell-free protein synthesis platforms, Xpress CF and Xpress CF+. Sutro will be responsible for delivering ADCs for Phase I clinical trials, while Merck Serono will handle clinical development and commercialisation of any resulting products.
Merck Serono will make an upfront payment to Sutro and will fund certain R&D activities. Sutro is also eligible to receive payments on completion of certain research, development and regulatory milestones potentially totalling €230m, as well as royalties on product sales. Further financial details are not being disclosed.
