ImClone receives $5m payment from Merck KGaA
ImClone Systems has received a cash payment of $5m as a result of its achieving a milestone in its license agreement with Merck KGaA of Darmstadt, Germany, for development of Erbitux (cetuximab), an IgG1 monoclonal antibody, outside North America.
ImClone Systems has received a cash payment of $5m as a result of its achieving a milestone in its license agreement with Merck KGaA of Darmstadt, Germany, for development of Erbitux (cetuximab), an IgG1 monoclonal antibody, outside North America.
The milestone relates to the European Commission approval of Erbitux for the treatment of patients with metastatic, EGFR-expressing colorectal cancer after failure of irinotecan-including cytotoxic therapy. Upon payment, ImClone Systems issued 58,807 shares of ImClone Systems' common stock to Merck KGaA, representing the sale of these shares at a 10% premium to market value as provided in the license agreement.
'This payment is the final milestone-based payment from Merck KGaA under our Erbitux license agreement and it underscores the achievements of our partnership to date,' said Daniel S. Lynch, chief executive officer of ImClone Systems. 'Thanks to the efforts of all three companies involved in the development of Erbitux, ImClone Systems, Merck KGaA and Bristol-Myers Squibb, this antibody is now available to many thousands of patients with late stage colorectal cancer throughout Europe and the Americas. We look forward to an enduring collaboration with our partners as we work to maximise its clinical and regulatory potential around the world.'